Yorkshire Bank recently undertook a survey of parents, asking how willing they would be to help their children buy a home. Almost 60% of the people surveyed said they would take on debt to help children buy their first homes. 70% also said that they intended to pay their own mortgages off early to release cash to help their children. So, what was the main reason for parents helping out with mortgages? Well, 75% of them dreaded the thought of their kids still living at home when they were 30!
Our View:
Getting on the property ladder for the first time can be difficult, especially with house prices so high at the moment. However, buying a house is a huge commitment and requires proper planning and saving. If first time buyers have a deposit available they are likely to benefit from better interest rates from the lender, meaning lower monthly payments. The mortgage term could also be longer, especially if the buyers are young. This would also reduce monthly payments. The general rule is not to overstretch yourself with financial commitments. Make sure you can afford your mortgage and bills. If you are employed, make sure you are covered in the event of accident, sickness and redundancy. And, if you have a partner, make sure you have enough life insurance to pay the mortgage off on death. Visit our site totally dedicated to mortgages and property - Mortgage Crazy.com .