Posted on: March 1, 2026
How Parents Can Support Their Children in Buying Their First Home
With property prices continuing to rise, stepping onto the housing ladder has become increasingly difficult for many young people. The good news is that parents have several practical ways to help their children secure their first home.
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Financial Gifts Toward the Deposit
Parents can choose to gift money to boost their child’s deposit. A larger deposit can reduce the mortgage required and lower monthly repayments. Before gifting funds, it’s important to understand any legal or tax implications, including potential effects on inheritance tax.
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Joint Mortgages
Taking out a joint mortgage allows parents and children to combine their incomes, which can increase the total amount a lender is willing to offer. However, both parties share responsibility for the mortgage, so it’s essential to be clear on the financial commitments and risks involved.
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Family Offset Mortgages
With a family offset mortgage, parents place their savings into an account linked to their child’s mortgage. These savings reduce the interest charged, helping the child pay off the loan more quickly. Unlike a gift, the savings remain in the parents’ names.
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Offering Rent‑Free Living
Allowing children to live at home rent‑free—or at a reduced cost—can help them save significantly faster for a deposit. Even a short period of reduced living expenses can make a meaningful difference.
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Building Financial Confidence
Parents can support their children by teaching them the basics of budgeting, saving, and managing credit. Strong financial habits make the home‑buying process smoother and help young buyers feel more confident in their decisions.
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Encouraging Professional Guidance
Recommending that children speak with mortgage brokers, financial advisers, and solicitors ensures they fully understand their options. Professional advice can help them choose the most suitable route based on their circumstances.
Buying a first home is a major milestone, and with the right support, parents can play a crucial role in helping their children achieve it. Each option comes with its own advantages and considerations, so it’s important to explore them carefully and seek expert advice where needed.
We hope this article helps you understand how parents can help their children to buy a first home. If you have any more questions or need further assistance, feel free to get in touch.
Craig Power craig.power@villagefs.co.uk or Luke.spires@villagefs.co.uk.
The information contained within was correct at the time of publication but is subject to
change 01.03.2026.
Your home may be repossessed if you do not keep up repayments on your mortgage.
