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Lending or gifting is a major financial commitment – Credi can help you!

Lending or gifting are some of the most common ways of parents helping their children buy their first property.

YourMoney highlights a number of alternative options for UK parents to help their children buy a home and highlights the key risks involved.

There are many ways for parents to financially help their children afford their first property. The most common way for parents to help their children is lending or gifting them money. Formalising and documenting the agreement is often where issues arise. With SaaS software such as Credi, an informal loan between family and friends can be formalised, documented and managed all in one place. In turn, protecting relationships and avoiding arguments.

Author Patrick Fitzpatrick, mentions Royal London’s guide, that highlights other ways that parents can help their children buy a home. Including acting as a guarantor, taking out a joint mortgage, taking out a second mortgage or even equity release.

Another key aspect that Royal London suggests parents always take into account is the potential tax risks involved. Such as, when parents are named in their child’s deed for the property, making them liable for an additional 3% stamp duty on a second home.

Read more by clicking the link below

Credit: John Fitzsimons

Source: www.yourmoney.com/

Tim K. Dean, Credi Founder | Commentator & Expert on Family Lending, Bank of Mum & Dad and Neo-Credit Scores is available for media interviews and appearances. More…

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Credi Pty Ltd is a Financial Technology business, not a marketplace lender. Our mission is to change the way we lend money. We want to empower people to help each other and take control of their financial relationships without creating friction and stress.

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Better Loan Documentation
& Management

Sign up and become one of the thousands of people and business around the world using Credi to protect them selves with robust loan documentation and management today.