The most common and straight forward way to support your child, if you can afford to do so, is to gift an amount of money towards a deposit, which would be non-repayable.
If you're not in a position to contribute to your child's deposit with a cash gift but you'd still like to help, our Family Mortgages provide an alternative solution.
You'll need to deposit cash into one of our savings accounts (with the exception of our fixed rate, regular saver and ISA accounts), which will be used as additional security on the mortgage. The savings will still earn interest in the normal way, but the cash must remain in the savings account until such time as the security is no longer needed.
Instead of using your savings as security, we will take a legal charge over a suitable property for the length of the mortgage, or until such time as the security is no longer needed.
Minimum 5% deposit required. There are other conditions required to qualify for this product but our mortgage advisors will talk through everything in detail with you at the time of your mortgage appointment.
Two savings accounts designed specifically to help save for a deposit
Unless you’ve already got your deposit you will need to start saving. The more the better, but you should aim to save at least 5% of the price of the property. If you can save 10% or more you're likely to get a better mortgage deal as you'll be borrowing much less.
To help you save for your first home we have two specially designed savings accounts. Both offer really competitive interest rates and special terms for first time buyers. Take a look at our Help to Buy: ISA and our First Home Saver accounts.
It’s natural to start looking for property as soon as you’ve made the decision to buy. However, before you start looking in earnest make sure you know what you can afford. One of the biggest mistakes you can make as a first time buyer is to find your dream home and then discover you can't get the mortgage you need.
We know that choosing a mortgage isn’t as exciting as looking for a new home, but an hour spent with one of our mortgage advisors will put you in a great position to buy. You’ll know exactly what you can borrow and what it will cost. Being prepared can also put you in a stronger buying position as the seller will see how serious you are.
You can get an initial idea of costs using our mortgage calculator but if you want to know exactly what you can borrow, arrange an appointment with one of mortgage advisors. We'll have the kettle on when you come in.
You might already be looking. If you haven’t yet, the easiest way to keep up to date with new properties coming to the market is online. Websites like Rightmove and Zoopla are used by most estate agents and there’s obviously the websites of the estate agents themselves. Registering with estate agents should also ensure you get to know quickly when a new property that matches your requirements comes on the market. Have a look at the properties Cumberland Estate Agents has available.
Of course, you can see the details of properties online but there’s no substitute for actually viewing them. Have a look at as many as possible and you'll quickly see what you can get for your money. One will catch your eye sooner or later, but if it's the first one you see, make sure you have a look at some others to make sure it's the right one.
When you’ve seen a property you like go back for a second viewing. It’s amazing what you miss on your first visit. Try visiting at a different time of day to see what the noise and traffic are like. Concentrate on the things that are really important to you and, if you can, take a friend or family member who may spot things you miss. Take your time and ask plenty of questions.
So you’ve found the property and you know you can afford it, it’s time to make an offer.
In England, most properties are sold by estate agents who prepare details of the property and quote a specific asking price. You can, however, offer whatever you want for the property. A small number of properties in England are sold by sealed bids or at auction. If the property you are interested in is being sold by either of these methods, you should contact one of our mortgage advisors well in advance so that they can explain the important differences in the process. The process of buying also differs slightly in Scotland.
Remember, as a first time buyer you do not have a property to sell, which might give you an advantage over other potential buyers as you should be able to buy more quickly. If you have already been in to see us and have a Cumberland Mortgage Affordability Certificate, then this is an even better indication that you are ready to move and could be the deciding factor if you are bidding against someone else.
If your offer is accepted, the estate agent will usually let you know quickly and you’ll then need to instruct your solicitor/conveyancer to undertake the legal work. You’ll also need to let your mortgage advisor know that you’ve had an offer accepted so the mortgage process can start.
You’ll need to be patient at this point. (We know that’s easier said than done!) The process of buying a house involves quite a bit of paperwork. You’ll need to complete your mortgage application and your advisor will then instruct a valuation. Your solicitor or conveyancer will also begin liaising with the seller’s solicitors to complete the required legal documents. Be aware that if you’re involved in a chain (where the person you’re buying from is buying another property), the process can take a little longer as there are more people involved.
If you’ve an idea of when you’d like to move in let the seller and their solicitor know as early on in the process as possible. Realistically, completion (when you get the keys and you can move in) can take anywhere between 4 and 12 weeks but this will depend on a number of factors. The completion date will usually be agreed a couple of weeks or more in advance in order to give everyone time to plan the move.
Completion will take place when the seller's solicitor confirms they have received the money and the legal paperwork is finalised. It's at this point you can collect the keys and it’s time to start life as a home owner. Enjoy!