Parents who are not clued up financially could be exacerbating their debt worries by helping their children out with money without knowing the most co…
Parents who are not clued up financially could be exacerbating their debt worries by helping their children out with money without knowing the most cost-effective ways of doing so, new research has suggested.
A survey carried out by the Halifax has found many mothers and fathers are behind the times when it comes to assisting their offspring in regards to issues such as purchasing a property.
The investigation revealed 53 per cent of parents of potential first time buyer children – those aged between 18 and 35 – are not willing to seek financial assistance to find out how to best help their kids.
Furthermore, 38 per cent of those questioned admitted they were unaware of most of the major mortgage products designed to help young people get a foot on the UK property ladder.
And this is despite nearly a third – 32 per cent – of respondents claiming they are willing to open up the ‘bank of mum and dad‘ to support their children with property purchases.
Halifax, however, warned that the housing and mortgage market has altered dramatically from when parents were likely to have entered it, stating many still mistakenly assume the only way they can help their kids is to stump up the cash for a deposit.
Stephen Noakes, commercial director for mortgages at the bank, said: “Our research demonstrates that parents aren’t as savvy as they could be when it comes to deciding how best to help.”
The news follows a recent study from MyVoucherCodes.co.uk, which revealed many mums and dads are dipping into the cash they have saved for their children as their own finances are becoming increasingly stretched.
By Joe White