Buying a house is a big deal, especially for young people today. It can be really tricky, which is why parents (or the ‘Bank of Mum and Dad’) often help out. I’ve lived and worked in real estate in Burnley all my life, so I know the housing market here really well. With this in mind, I’ve put together a guide called ‘Bank of Mum and Dad in Burnley: Helping Kids Buy Their First House – Top Tips for Parents’. This guide will offer helpful tips to parents about supporting their kids in getting their first house while also securing their own financial future.
The first thing to do is chat openly with your children about money. It’s important that you both know exactly what kind of help you can give and what that means for everyone. This includes gifts, loans, or being a mortgage guarantor. Be clear about how you expect to be paid back, if at all, and how this could impact your own retirement plans.
Then, it’s a good idea not to just rely on a handshake deal. Get some legal advice, especially if large amounts of money are involved. It might be helpful to draw up a contract with the terms of your financial help. This can help prevent any disagreements or misunderstandings in the future.
It’s also crucial for you to teach your child what owning a house involves. Show them basic things about caring for a house, how to budget for ongoing costs like council tax, utilities and major repairs. Help them understand different mortgage options and get to know the local property market. As a Burnley local, I know our market really well—it will be useful for your children to know this too.
When it comes to buying the house, you could go with your children to look at properties. Your experience and knowledge of the local area may help them spot any issues and decide if a house is worth its price. But remember, the final choice should be theirs—it’s their house, after all.
Last but not least, get some professional advice. Talk to a financial advisor or a lawyer—they can help steer you clear of any problems, and give you more confidence in navigating the situation. This can also help with arranging your personal finances and making sure all your children are treated fairly.
Helping your children buy their first house is a big deal, financially and emotionally, but it can also be a really exciting time. The ‘Bank of Mum and Dad’ requires careful thought and planning to make sure it works for everyone involved. So, having honest talks about money, creating a clear agreement, teaching your child about owning a house, supporting them and getting professional help, can all contribute to a positive experience. Remember, the ‘Bank of Mum and Dad’ is driven by love, but it works best with a good understanding and respect for the money side of things.