Guest Editor
Share this article

When it comes to helping your children hop up onto the property ladder, it’s always been the same, ‘give them some money’. But what does that really mean? Well, put frankly, it means you give them money you know you’ll never see again!

In a period where the cost of living crisis is taking hold for many and cash isn’t as readily available as it once was, what if there was a way to help your children onto the property ladder without the need of giving cash?

What if there was a way you were able to provide them with more funds than you would normally feel comfortable doing so in cash?

The good news is that there is a way and you may find yourself providing a more rewarding cash sum to use as a deposit.

At H D Consultants we can arrange for a mortgage lender to put a charge on your own home in the same amount that you wanted to gift your child in cash.

Furthermore, as long as you or your child has a 5% deposit, this lender will then consider a 20% charge on the equity in your own home. Which, as long as you don’t sell or default on the mortgage in the next 10 years, they take away the charge completely and its gone!

Your child will then benefit from being able to get on to the property ladder, using your home as a steppingstone. Also, by having their own cash deposit and theoretically a larger deposit through the charge on your own home, they will also be offered a beneficial rate, lowering their monthly mortgage payments. So in reality you have not only helped your child buy the property, you could also make it cheaper for them!

All the while, your own cash has remained in your bank.

Let’s look at an example from the lender:

Value: £180,000

Mr Wilson is 55 years old and earns a reasonable income as a teacher. His step-daughter Christine has recently graduated from university and he’d like to help her buy her first home. However, he doesn’t have savings to spare.

Christine has saved £9000 – a 5% deposit toward buying the flat she’s chosen and wants to borrow £171,000. George can’t spare any cash but he does own his home.

The lender allows George to use some of the value of his home as security for Christine’s mortgage. By doing this he can help Christine get a more favourable interest rate than she’d otherwise be able to get.

George isn’t using the whole value of his home as security, just the £36,000 needed to secure Christine a better interest rate. Assuming Christine keeps her mortgage up to date, the charge on George’s property comes to an end after 10 years.


If this is something you can relate to and would like to discuss how we might be able to help you, help your children to get on the property ladder, speak to a member of our team. Undertaking proper planning with real Advisers, can make the world of difference!

H D Consultants are an award winning, long established multi-adviser firm based in Colchester.

We operate across several markets as residential mortgage brokers, BTL specialists, commercial finance & bridging finance brokers, equity release/lifetime mortgage consultants, life insurance advisers and will writing & estate planners.

Visit for more information or contact Austyn Johnson on [email protected] or by telephone on 01206 577 266.