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Helping a family member buy their first home - your questions answered

(79 Posts)

GNHQ have commented on this thread. Read here.

LibbyGransnet (GNHQ) Mon 12-Jul-21 09:04:21

This Q&A is now complete - there will be no further answers posted.

Lending or gifting money to family doesn’t come without challenges - it’s a big commitment for both you and them. If you’re thinking of taking the step to help a loved one get onto the property ladder, and you have a question about how it might affect your future plans, this is your chance to ask the experts.

The experts:
Graham Sellar, Head of Mortgage Development, Santander - Graham has more than 30 years of experience working in financial services, and has been a mortgage specialist at Santander since 1996. He is regularly quoted as an expert voice in the media on all things mortgage related.

Hayley Burton, Financial Planning, Santander - Hayley has 25 years of experience in retail banking and 6 years’ experience in the wealth area, where she leads teams across the UK who provide expert, trusted investment and protection advice to customers based on their individual needs and to achieve their financial goals. Hayley is also a Mum and Step Mum to three children aged between 11-16, and so she’s regularly thinking of ways to help her children financially in the future.

Linda Murray, Regional Manager, Santander - Linda has worked in banking for 35 years across a broad spectrum of areas including mortgages, risk and most recently face to face banking in Santander branches. At work, she’s particularly passionate about supporting customers to help them make informed choices about their banking. Linda is also a single mum to her 24 year old daughter, Charlotte. She’s looking to support Charlotte financially and emotionally when she buys her first home.

Do you have questions around what to consider when deciding to help loved ones? Or perhaps you’d like to know more about what help you could provide (financial and non-financial)? And if you do help with a gift, loan or early inheritance, would it have an implication on your own future? The Santander experts are here to help and will be back to answer some of your questions between 26 July and 6 August.

All who post a question (regardless of whether it is answered or not) will be entered into a prize draw where one GNer will win a £200 voucher for the store of their choice (from a list).

Thanks and good luck!

GNHQ

Insight Terms and Conditions apply

tanith Mon 12-Jul-21 10:08:20

I’m Grandma to 9 Grandchildren it’s impossible to help them all and unfair to help one or two so I’m pretty much stuck not helping any of them to get on the property ladder. Which is a shame.

NotSpaghetti Mon 12-Jul-21 16:54:19

I've looked at this, but it seems to me a financial gift is the best bet if you can do it. I don't want to be responsible in any way for someone else's mortgage.

FannyCornforth Mon 12-Jul-21 20:33:29

A £200 voucher, you say?
For free market research?
You really are spoiling us Santander!

Mollygo Tue 13-Jul-21 11:35:54

We have offered to help my DGD with a deposit for a house. The problem is always how to give them money without problems.

Charleygirl5 Tue 13-Jul-21 12:44:00

I could be wrong but I thought if one gifted over £3K per annum to the same household tax reared its very ugly head.

FarNorth Wed 14-Jul-21 09:14:09

I asked Santander about this very thing, and they were unable to help.

I found, elsewhere, that I could get a Lifetime Mortgage - which is different to equity release in that it requires the interest to be paid, so the amount owed does not increase.
Covid, however, altered my relative's plans so we did not go ahead.

Does Santander now offer, or plan to offer, Lifetime Mortgages?

GeminiJen Wed 14-Jul-21 14:48:28

I gifted a sizeable amount of money to my daughter three years ago, to help her buy a property for her and her children post divorce. It was all arranged through her Bank/Mortgage provider and was, as I recall, quite straightforward. I simply had to sign a form to the effect that this was a gift, not a loan. And, provided I lived for seven years from that date, there would be no tax implications for her. Gives me an incentive to live that long grin

kayewillan Thu 15-Jul-21 09:48:39

How much can I give to my children without incurring taxes and can my Mother ( their Grandmother) gift to each of my three children too

Ninny1967 Thu 15-Jul-21 12:51:36

Message deleted by Gransnet.

Mollygo Thu 15-Jul-21 14:33:34

Message deleted by Gransnet.

Parris Thu 15-Jul-21 15:38:33

Would I be better saving in my children’s names or waiting and giving them a lump sum from me?

juliedee Thu 15-Jul-21 15:39:01

always nice to know how much you can give family members without it causing tax implications for sure

jane1956 Thu 15-Jul-21 15:56:06

yes grandson is 20 and his sister 18 so hope to give them £10,000 each when the time is right

Dendav Thu 15-Jul-21 16:07:58

Santander, that's not a name you see often on the high street !

sheebasima Thu 15-Jul-21 21:29:36

How much interest do you get tax free on savings?

Lollin Thu 15-Jul-21 21:38:36

I wouldn’t automatically think of Santander since they closed my local branch. So my quest is what would be best, asking for advice from a bank I can only access online or a bank where I have the option of face to face conversations?

barbaraellen Thu 15-Jul-21 22:48:24

What are the tax implications of the various options

djpmullen Fri 16-Jul-21 08:46:03

I have gifted money to my children for house purchases,Tax ?????

J52 Fri 16-Jul-21 09:09:47

Message deleted by Gransnet.

burwellmum Fri 16-Jul-21 11:07:03

I had to gift the deposit to my daughter as that was what the mortgage provider insisted upon. I'm hoping I live 7 years. However I am more concerned about what happens if they separate; the gift was to my daughter but presumably there was nothing I could do to protect the money. I have other children so will face this problem again.

burwellmum Fri 16-Jul-21 11:08:21

Sorry should have said, they bought the house as a married couple.

Jocharlton Fri 16-Jul-21 11:37:18

Luckily we’re with nationwide and we helped out our daughter with no problems at all.

chris8888 Fri 16-Jul-21 11:45:28

I think unless you can really afford it and you don`t care what they do with the money you give them then don`t do it. I find it really controlling to dictate what they do with any money you give them.

dahlia08 Fri 16-Jul-21 12:02:16

We gifted money to my son who moved in a bigger place. We cash our private pension. Lots of filling detailed needed from the solicitor. We had the money from three places. They asked so much detailed question on the form...where from, how much from every single one. I know it’s their job to check all just in case it’s money laundering. It took some time. I can go on....