As First time buyers continue to struggle to save their deposit to climb onto the property ladder, some of the lucky ones get to call on the “Bank of Mum and Dad”. But other family members are not receiving much interest on their savings so they are also lending to their nieces/nephews or grandchildren.
The more the merrier, Family Crowdfunding, clearly the details need ironing out before you lend to this close network! If the deal isn’t clearly labelled for what it is Christmas and Family parties could get a little awkward.
“The Borrowers/The Kids” sign up for a Two or Three year fixed mortgage with the aim to remortgage once that fixed term is over and from the remortgage they release the deposit raised back to the “Crowd” plus a bit of interest.
Loads to think about before you sign up, especially having various Aunts and Uncles having a percentage in your home, but it’s your family what could possibly go wrong?