HOW TO HELP THEM FI­NALLY MOVE ON…

A third of mil­len­ni­als will prob­a­bly never own a home, ac­cord­ing to new re­search. But there are ways to help...

Good Housekeeping (UK) - - The Gh Report -

➤ THE LISA (Life­time ISA): Un­der -40s can put away up to £4,000 a year tax-free and re­ceive an ex­tra 25% from the Gov­ern­ment, too. The money can only be used as a house de­posit or put to­wards their pen­sion. ➤ HELP-TO-BUY ISA: The Gov­ern­ment will give you a 25% boost on sav­ings be­tween £1,600-£12,000. You can open the ISA with a lump sum of up to £1,200, and then can add in up to £200 a month. ➤ HELP-TO-BUY EQ­UITY LOAN: Your chil­dren can get a new build home with a 5% de­posit. The Gov­ern­ment will lend 20%, of which you pay no loan fees for the first five years, and the other 75% is bor­rowed. For more ad­vice on the ISAS and eq­uity loan, visit help­to­buy.gov.uk. ➤ SHARED OWN­ER­SHIP: Sold via hous­ing as­so­ci­a­tions, it in­volves you buy­ing a stake of the property (usu­ally be­tween 25-75%) us­ing a de­posit and a mort­gage. You pay rent on the rest, and can in­crease own­er­ship over time. ➤ MORT­GAGE INI­TIA­TIVES: There are a few, such as Bar­clays’ Fam­ily Spring­board (where you can buy a property with­out a de­posit if a rel­a­tive can pro­vide 10% of the price as se­cu­rity) or Na­tion­wide’s Fam­ily De­posit Mort­gage (where you bor­row against your home and gift that money to a fam­ily mem­ber as a property de­posit). Check any tax im­pli­ca­tions with an in­de­pen­dent fi­nan­cial ad­viser first.

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