Planning across generations: helping your children onto the property ladder

In Burford, West Oxfordshire, and across the Cotswolds, I support families in shaping financial plans that can include those who want to help the next generation buy a first home without losing sight of their own long-term plans. Good family finance planning finds the balance between practical support today and financial security for tomorrow, and everyone involved has clarity from the start.

Helping loved ones onto the property ladder

The difficulties facing younger people in becoming homeowners are well-reported, with many 30-somethings still renting. Consequently, an increasing number of parents and grandparents are stepping in to help children onto the housing ladder.

There are a number of ways to do this; gifting, loans and providing security to mortgage providers are all worth consideration, and many of these solutions have the dual advantage of helping with effective estate planning. However, you should seek advice when considering which option to take to ensure that no unexpected tax liabilities result from these acts of generosity.

Start with a family plan

Before we talk numbers, I like to agree the principles. How much help is affordable without compromising retirement plans or an emergency fund. How to treat siblings fairly over time. What happens if your child buys with a partner or later sells. Clarifying this early gives everyone confidence and points us toward the most suitable structure.

Practical ways to help in Oxfordshire and the Cotswolds

Gifted deposit

A straightforward gift can improve mortgage options and the rate offered. Lenders usually ask for a gifted-deposit letter confirming the funds are an outright, non-repayable gift and that you will not have an interest in the property. We also consider inheritance tax rules, allowances and the seven-year horizon so the gift makes sense within your wider estate plan.

Private family loan

A loan preserves the option to be repaid and can be interest-free or set at a modest rate. I recommend documenting the terms and deciding whether to secure the loan with a legal charge.* This can help with fairness between siblings and gives clarity if circumstances change. We also cover potential tax on interest and what happens if the loan is forgiven later.

Providing security to the lender

Some arrangements allow parents to help without gifting cash, for example acting as a guarantor, using savings as security, or being a joint borrower while staying off the deeds. These routes can increase your responsibility if repayments are missed, so affordability checks and a clear understanding of risk are essential. Suitability depends on personal circumstances and lender criteria.

Other routes we may explore together

• Using existing property wealth, for example through remortgaging, to release funds for a gift, while weighing costs and long-term impact.
• Trusts and legal agreements that can ring-fence support for your child.* Cohabitation agreements or nuptial agreements may help protect family gifts if a relationship ends.
• Protection policies that can support mortgage repayments or provide a lump sum, helping resilience for the whole family.

Protect both the gift and the relationship

Where larger sums are involved, a deed of trust can record contributions and intentions. If your child is buying with a partner, setting expectations in writing can remove uncertainty and preserve family harmony.

What lenders typically ask for

Expect proof of funds and source of wealth checks, a gifted-deposit letter if gifting, a written loan agreement if lending, and evidence of advice for more complex support. I guide clients through these steps, so the process feels clear and manageable.

How Courtney Jones Financial Services can help

Every family story is different. My role is to bring structure, clarity and local insight, and to coordinate with trusted legal and tax professionals where appropriate. Together, we can create a plan that helps your child onto the ladder while keeping your future secure.

Your home may be repossessed if you do not keep up repayments on your mortgage.

The levels and bases of taxation and reliefs from taxation can change at any time. Tax relief is dependent on individual circumstances.

Although the content of the article was correct at the time of writing, the accuracy of the information should not be relied upon, as it may have been subject to subsequent tax, legislative or event changes.

*Please note that advice in these areas would necessitate the referral to services that are separate and distinct to those offered by St. James's Place. These services would not be regulated by the Financial Conduct Authority.