Helping a Family Create a Realistic Plan for Homeownership
The latest industry news and guides from Active Mortgages.
The latest industry news and guides from Active Mortgages.
A parent contacted us to explore ways of helping their adult child purchase a larger family home.
The client hoped they could join the mortgage application to increase the borrowing available. Their child already owned a flat outright, which they expected to sell for around £200,000, providing a substantial deposit towards their next home.
They were hoping to purchase a property valued at approximately £455,000.
Although the deposit was strong, affordability was the main obstacle.
The buyer had an employed income of approximately £40,000 per year, which wasn’t sufficient to secure the mortgage required for their preferred purchase price.
The parent was willing to be added to the mortgage to strengthen the application. However, due to their age, this would have significantly restricted the mortgage term, resulting in much higher monthly repayments and making the application unaffordable with most lenders.
Rather than creating a solution, adding a parent to the mortgage would likely have reduced the client’s borrowing options.
Instead of pursuing an application that was unlikely to succeed, we explained how mortgage affordability works and outlined a practical route to achieving the client’s goal.
We recommended waiting until the buyer had built an additional source of income through self-employment. Once they had completed at least 12 months of trading, many lenders would be able to consider both their employed income and their self-employed earnings when assessing affordability.
We also discussed alternative property options, including purchasing a smaller home initially or choosing a property with scope to extend or improve over time.
Following our discussion, we provided a written summary of the advice so the family had a clear plan to work towards.
Rather than submitting an application that would almost certainly have been declined, the family left with a realistic strategy for purchasing their next home.
They now understood:
We also agreed to stay in touch and review their position once the buyer had established their additional income.
Sometimes the best mortgage advice isn’t arranging a mortgage immediately.
Our role is to provide honest, practical guidance that helps clients make informed financial decisions – even if that means advising them to wait.
By taking the time to explain affordability, lender criteria and future options, we helped this family leave with a clear roadmap instead of false expectations.
At Active Mortgages, we believe trusted advice is about finding the right solution at the right time, not simply securing the next mortgage.
Book a call with one of our team to talk about your requirements.
