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New students, same old story

It’s one of the great conundra of life.

The children leave home (finally!) by going on to university and they do so with your blessing.

Yet you have new set of worries. Will they eat properly? Do enough laundry? Not spend all their time partying.

Here’s a bet though - the biggest worry is not only how they find accommodation but how they can get onto the housing ladder and acquire their first property after they have (hopefully) graduated and embarked on their chosen career.

Or they’ll boomerang – I hadn’t heard the phrase either until a friend explained that both his daughters had moved back into the family home after having been away at university……and they’d moved back in to the family home with their boyfriends.

So how can you help them get onto the property ladder?

Until relatively recently it was rather simple. If you as a family could muster the deposit you could get a mortgage on a property and your offspring would pay the rent – perhaps with some friends – and hey presto after three or four years you have a place for them to live and a property to gather capital.

Unfortunately, that particular avenue has been closed off by the taxman who has slapped an additional 3% stamp duty as a consequence of owning a second home.

This makes the cost seriously unattractive and so families who want to support their kids have more thinking to do.

And there is a new conundrum. Students are leaving university routinely in tens of thousands of pounds of debt and it can be years before they can afford the deposit for a home. 

And we are acutely aware that a first home is the highest priority for a huge number of this under-served sector of society.

Happily, that is where the Family Building Society can help.

We have a new proposition which recognises that family members can support their children using their own income on the application.

It’s called the Joint Mortgage Sole Owner (JMSO) and is entirely in line with our ethos of ‘family helping family’.

This is particularly useful for recent graduates who are embarking on a professional career, but haven’t quite yet got the income they need to afford their first home. We know that in time, as they progress up the greasy pole of corporate life, their earning power gets greater. Once children are able to afford the mortgage on their own, the parents are released of their responsibility and can start to look towards a comfortable retirement.

It has other uses – it can, for example, also be used for offspring to support their elderly parents stay in the family home, or help them get a mortgage to move closer to family, if and when that time comes. 

We think it is a rather neat solution to a complicated issue.

Download our Joint Mortgage Sole Owner (JMSO) customer leaflet for more information.

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Family Building Society
Ebbisham House
30 Church Street
Epsom
Surrey KT17 4NL
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