MAKE THEIR FIRST HOME MORE AFFORDABLE

If you’re not in a position to assist your child with a deposit or mortgage, you can still help by showing them the variety of ways they can make buying their first home more achievable.

First, there are savings accounts that can help boost your child’s deposit. Lifetime ISAS are available to anyone aged 18 to 39 and all growth is tax-free. They can save up to £4,000 each year and the government will add a 25% top-up to whatever they deposit. The ISA can then be used towards a deposit on a first home or a pension. But beware: if they withdraw the money for any other reason, there is a 25% penalty charge.

First-time buyers also pay less stamp duty than anyone else, thanks to a special discount on properties worth less than £500,000. There is no stamp duty to pay at all for first-time buyers purchasing a home worth less than £300,000. If the property is worth between £300,000 and £500,000, then there is no stamp duty to pay on the first £300,000, and 5% to pay on the remainder, saving up to £5,000 on what they would have previously paid.

There are also schemes to help cut the cost of buying a first home. Help to Buy equity loans could help make a new-build home more affordable. The government lends first-time buyers up to 20% of the value of the property interest-free for the first five years.

Another option could be shared ownership. These schemes allow buyers to purchase part of a property and rent the rest from the local authority. Owners can then buy further shares until they own the property outright.  FIND AN INDEPENDENT FINANCIAL PLANNER at financialplanning.org.uk/wayfinder  FOR DEBT ADVICE, visit stepchange.org or call the National Debtline free on 0808 808 4000  SIGN UP TO OUR free newsletter at financiallyfabulous.co.uk