Is There a New Alternative to “The Bank of Mum and Dad”?

March 30, 2018 11:00 am Published by

As house prices rise, it’s harder than ever for first-time buyers to get onto the property ladder, despite the fact that paying rent is often more expensive than monthly mortgage repayments. Even with the changes to stamp duty, there are still various costs to consider. Unfortunately, the problem for most is saving enough for a deposit. Many young people are turning to “The Bank of Mum and Dad” to help pull together a big enough sum of money.

What is Property Pact?

With that said, homebuyers and their parents will be pleased to learn that a property funding platform called Property Pact has been introduced, with agreement from the Financial Conduct Authority. The purpose of Property Pact is to connect investors with young homebuyers; it will make it easier for them to get onto the property market. Using a peer-to-peer platform, the funds for a deposit are provided by willing volunteer investors. These investors will get a significantly better rate of return than they would if they kept their money in a traditional savings account.

How to Apply

Errol Woodhouse, CEO of the platform, is excited to help young people and their parents. After acknowledging the restrictions of many of the available Government schemes, Woodhouse is proud of his new alternative. Property Pact is already accepting applications from first-time buyers who require the financial support. To apply you must have an annual salary of £30,000 and good credit rating. You must also have 5% of the deposit you require.

If you’re planning to buy your first home in the near future, we’d recommend doing your research; it’s important to understand all of the costs involved. For clear independent whole of market mortgage broker assistance, we would be happy to recommend John Demetriou based in Southgate. Please contact him by email at john@jdfs.co.uk or call him on 020 892 02830.

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This post was written by Dennis Adam

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