Anyone looking to help their children afford a mortgage has a range of opportunities to do so, one expert has said.
Peter O'Donovan, mortgage manager for Bestinvest, explained that the fact that there are now mortgage products which allow a parent's income to assist their child, options had increased in recent years.
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O'Donovan said: "[The parents] have the choice, really, as to whether they put a big lump sum in to assist the child in borrowing the money; or they can use their income to assist the child in paying off the mortgage."
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However, he did warn that if parents used their income to assist their children then they would be party to the mortgage, making them jointly responsible if things go wrong.
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For this reason, O'Donovan said, many people preferred to give their offspring a cash lump sum and keep their names off the mortgage.
Research conducted by Abbey found that first born children are more likely to receive a financial contribution towards a property than their siblings.
Date: 20th, February, 2008
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