Inflated house prices and the credit crunch have made it harder than ever for first-time buyers to get a mortgage.

But if you want to help your child buy their first home, there are several financial products that could help you out.

If you already have a mortgage, think about remortgaging to increase your loan – to help provide a deposit for your child.

If you go down this road, however, make sure you consider the impact that the increased borrowing would have on your own standard of living and your retirement plans.

If your child can’t get a big enough mortgage, you could consider a guarantor mortgage.

These work by committing the parent to guaranteeing the payments on their child’s loan, so you would have to priomise to meet any repayments should your child fail to do so.

For working parents, a joint mortgage could be a viable option. These consider both your and your child’s income as well as any money outstanding on your own mortgage, and allow you and your child to be named on the mortgage agreement, providing you with some power over any future transactions but still leaving you liable if your child stops paying their share.

Alternatively, you could look at a family offset deal, where your savings are balanced against your child’s debt, so the amount they owe and pay interest on is reduced.

One final option is to buy a property for your child while they’re at university, which could mean saving on the rent they would otherwise have to pay.

It could even bring in an income from renters, which would help to cover the mortgage.

To find out which option is best for you, we recommend you take professional advice from an independent mortgage broker.

»To find out how we can help you call 0207 138 4693.  Lines open Monday-Friday, 9am – 5pm. Find out how the Which? Group could help you with your mortgage, visit www.whichmortgagehelp.co.uk 

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