Background

Michael and Laura are married with two sons, Tom, aged 22 and Charlie, aged 19. Charlie is still at university, but Tom has graduated and has just started his first ‘proper’ job.

Tom had enjoyed his independence at university and Michael and Laura had also rather enjoyed having the house to themselves. However, whilst Tom was keen to get a foot on the property ladder, he wasn’t earning enough to be able to buy a property on his own.

Michael and Laura wanted to help Tom to buy his first house and wanted to explore ways of funding their son’s deposit. However, as their investment portfolio had been structured with the longer term aim of retiring in 10 years, they did not want to withdraw from it at this stage, as that may mean having to sell some investments at a reduced price, triggering capital gains on those investments which had performed well.

What we did

In order to release sufficient funds to allow Tom to buy his first home, Michael and Laura opted to secure borrowing against the investment portfolio.

What we achieved

By securing borrowing against their investment assets, Michael and Laura could keep their long-term investment plan in place whilst helping their son and agreeing a manageable repayment schedule with him as his career progresses.