19
Feb
Parental mortgage help explained
There are a number of ways that parents can help their offspring
get a mortgage, according to independent financial adviser group
Bestinvest.
Peter O'Donovan, mortgage manager for the firm, suggests that
providing a lump sum for a deposit is one of the most popular
methods of aid offered by parents.
"Nowadays there are certain mortgages where the parents' income can
be used to assist the child," said Mr O'Donovan.
"[The parents] have the choice ... as to whether they put a big
lump sum in to assist the child in borrowing the money."
He adds that they can also use their income to help their child pay
off the mortgage.
Bestinvest does indicate that parents generally keep products in
their children's names even if they have helped out financially -
in order to let them have some form of independence.
Abbey recently revealed that first-born children are more likely to
be given financial help to purchase a property than younger
offspring.
