Remortgages are being used by homeowners to help family members get into their first home.  Without help to build the required deposits to get approval for a mortgage there is little hope for home ownership.  It has been estimated that the average wage owner would have to save for over twenty years to afford the deposit.  The difficulty in raising a deposit is why many homeowners are using their remortgage to fund a deposit for a family member. 

It has been determined that rental fees are more expensive than mortgage payments currently.  However getting into a mortgage is difficult and so many are kept off of the property ladder.  Halifax has reported that the monthly cost of an average home with three bedrooms is £600.  At that level it is 16 per cent cheaper than renting the same type of property with an average monthly cost of £716.  During the housing market peak in 2008 it was 29 per cent more per month to buy than to rent.  The fact that buying is much more affordable makes it smart for a household to buy but again, it is almost impossible without financial help to secure a deposit.

Martin Ellis, housing economist at Halifax, said “The affordability gains for buyers relative to renters in the last three years have been significant. The average mortgage payment has fallen dramatically over recent years as a result of falling house prices and mortgage rates. At the same time, rents have risen due to strong demand for rented accommodation.

“Despite the improvement in the relative affordability of buying a home, the number of purchasers has continued to fall due to the ongoing challenges in raising a deposit and the considerable uncertainty over the prospects for the UK economy, which have severely constrained housing demand.”

For homeowners looking to assist a family member into an affordable home a remortgage can be the answer.  There are currently very cheap remortgages available and plenty of lenders offering great remortgages as both fixed deals and trackers.