Manchester Mortgages were contacted by a retired couple (early 60’s) asking if it would be possible to take out equity to help their 30 year old daughter get onto the property ladder.

There property was valued at £550,000 with no mortgage.

The Property their Daughter wanted to buy was £335,000 however she was only able to borrow £240,000 on her income.

We met with the clients and it was established that they had good pension income  with no other outgoings other than normal day to day living expenses.

The Clients also advised that it was highly likely that at some point in the future they would sell their property (within 10 years) and trade down to a smaller property nearer the coast.

They had previously been advised that the parents could go on the mortgage with their daughter but the term of the mortgage would be restricted to 18 year repayment mortgage which would mean the mortgage payments would be unaffordable to their daughter.

Manchester Mortgages were able to find a lender who would allow the clients to remortgage their property for £100,000 so they could gift their daughter  the difference to purchase her first property and take her mortgage over a 35 year term to keep mortgage payments within affordability.

Our clients  were provided with two options either take the mortgage on a repayment basis over a 20 year term or on a interest only basis over a 20 year term.

After full consideration of the costs and their future plans they elected to take the mortgage on a interest only basis with the option to make upto 10% overpayments per annum.

When our clients first contacted us they were considering Equity release but after a full assessment of their situation it was identified that Equity Release was not the best solution.


A lot of young people find it difficult to get onto the property ladder due to the increase in the valuation of properties.

In this situation the parents were in a excellent position to assist their daughter. However, even if you have a mortgage it is possible to remortgage your property or take out a further advance to help your children et onto the property ladder.

Manchester Mortgages have access to the whole of the mortgage market and in excess of 75 years arranging mortgages for a variety of reason.

Please contact us on  0161 706 0242 or email and we will be glad to assist.