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Gifting a house deposit

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One of the most popular lending requirements in later life is to support children or grand-children with that much needed housing deposit to buy their first home.

A lifetime mortgage option

This allows you to access the property wealth you have tied up in your home and pass this money onto your loved ones for them to enjoy now. The old concept of waiting until you pass away is no longer so relevant, as this can be decades potentially in the future and will often be too late for many needing access to funds today.

first time buyerThe benefit is that you get to see the result of your gift and enjoy seeing your family secure in their new home. 

Unlike springboard mortgages where you have to invest your savings with the lender to secure the mortgage for your family member, you maintain complete control over your finances. You enter into a lifetime mortgage that allows you access the funds you need, you have no requirement to make any repayments and the interest that is applied will roll up and compound.

So whilst you are potentially increasing the debt on your property, it is often overlooked that you have effectively invested the money into your family member’s property and given them the head start they need to have property ownership. By gifting the funds, you are applying a debt on your estate, so if you have large asset values for your loved ones to inherit, you can potentially reduce the Inheritance Tax liability, for more information on this please talk to one of our experts.

Benefits:
  • Family enjoy an early inheritance to use as they need today
  • Tax free funds
  • No committed repayments with a lifetime mortgage
  • Can reduce inheritance tax liability
For Consideration
  • You are taking on a debt that is secured against your property.
  • It can affect your ability to pay for future care.
  • It may reduce or negate your entitlement to means tested benefits (could apply if you release funds for your own use)

For a complete review and to see whether this is the right decision for you, CFS Equity Release can undertake a Free, No Obligation appraisal of your retirement planning and tell you if this is the right choice to meet your needs. Contact us today. 

A lifetime mortgage is not suitable for everyone and may affect your entitlement to means tested benefits, so it is important to seek financial advice before taking any action. If you are considering releasing equity from your home, you should consider all options available before equity release.
 
The interest that may be accrued over the long term with a Lifetime Mortgage, may mean it is not the cheapest solution. As interest is charged on both the original loan and the interest that has been added, the amount you owe will increase over time, reducing the equity left in your home and the value of any inheritance, potentially to nothing.
 
Although the final decision is yours, you are encouraged to discuss your plans with your family and beneficiaries, as a Lifetime Mortgage could have an impact on any potential inheritance. We would also encourage you to invite them to join any meetings with your Financial Adviser so they can ask questions and join in the decision, as we believe it is better to discuss your decision with them before you go ahead.
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About CFS

CFS Equity Release is part of Concept Financial Services a trading style of Delphic Financial Planning – who are appointed representatives of Openwork registered with the Financial Conduct Authority No: 486037

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A lifetime mortgage is not suitable for everyone and may affect your entitlement to means tested benefits, so it is important to seek financial advice before taking any action.  If you are considering releasing equity from your home, you should consider all options available before equity release.  

The interest that may be accrued over the long term with a Lifetime Mortgage, may mean it is not the cheapest solution.  As interest is charged on both the original loan and the interest that has been added, the amount you owe will increase over time, reducing the equity left in your home and the value of any inheritance, potentially to nothing.

equity release
equity release council

APPROVED BY OPENWORK PARTNERSHIP: xx/xx/2025

A lifetime mortgage is not suitable for everyone and may affect your entitlement to means tested benefits, so it is important to seek financial advice before taking any action. If you are considering releasing equity from your home, you should consider all options available before equity release.
The interest that may be accrued over the long term with a Lifetime Mortgage, may mean it is not the cheapest solution. As interest is charged on both the original loan and the interest that has been added, the amount you owe will increase over time, reducing the equity left in your home and the value of any inheritance, potentially to nothing.
Although the final decision is yours, you are encouraged to discuss your plans with your family and beneficiaries, as a Lifetime Mortgage could have an impact on any potential inheritance. We would also encourage you to invite them to join any meetings with your Financial Adviser so they can ask questions and join in the decision, as we believe it is better to discuss your decision with them before you go ahead.

Equity release is a Lifetime Mortgage  / Home Reversion plan which is secured against your property via a first legal charge. To understand the features and risks ask for a personalised key facts illustration.
Any existing mortgage(s) must be paid off on completion. Any money released, plus accrued interest to be repaid upon death, or moving into long-term care.

Equity release will affect potential inheritance and your entitlement to means-tested benefits both now and in the future.

We provide initial advice for free and without obligation. Only if your case completes would a typical fee of 2% of the loan amount released be payable subject to a minimum £1250.

CFS Equity Release is a trading name of Delphic Financial Planning Limited FCA No. 486037  which is an appointed representative of  The Openwork Partnership a trading style of Openwork Limited which is authorised and regulated by the Financial Conduct Authority FCA No. 408285

Delphic Financial Planning Limited – Registered Office: 17 Heritage Park, Hayes Way Cannock WS11 7LT – Registered in England No. 06613871

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