Parents fork out £18k towards children's mortgages
Sep 30, 2006
Parents are contributing almost of £18,000 on average towards their children's mortgages to help them get onto the property ladder, new research shows.
Almost half of the parents questioned in a survey recently see helping out with their children's mortgage as part of their parental duties, with one in six parents prepared to give them more than £30,000. Around 34 per cent of parents said that they would feel guilty if they didn't assist their offspring out financially and dads proved to be more generous then mums, being prepared to donate around £4,000 more towards their child's mortgage.
As house prices continue to rise, it's not surprising that first time buyers are looking for that bit of extra funding from their parents to get on the property ladder a director at a high street lender suggested. This could be one of the reasons we are seeing continuing first time buyer activity although houses getting more expensive.
However, many young buyers will still be funding their own mortgages, with 29 per cent of parents saying that they were not planning to give any cash to their children and did not feel guilty about it. Around 24 per cent of parents said that their children were old enough to be financially independent.
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