19 Feb

Parental mortgage help explained

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.

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