Bank offers children and parents joint mortgages
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Your support makes all the difference.Parents will be able to help their children on to the property ladder with a new type of mortgage to be launched next week.
The Bank of Ireland's "first start" scheme calculates the level of home loan on the income of both a child and their parents. In return for a larger loan, parents contribute to monthly repayments and are jointly liable for the loan.
First start is the latest in a series of products aimed at young buyers who are finding it increasingly difficult to afford to get on the property ladder. The number of first-time buyers fell to a record low in August, accounting for 13 per cent of sales compared with a long-term average of 25 per cent. The average deposit put down by a first-time buyer has risen fourfold over the past five years to £23,000, or £37,000 in London.
Roland McCormack, managing director of Bank of Ireland mortgages, said: "Rather than having to write a cheque to support their children during the early stages of home ownership parents can contribute a smaller amount every month. If you hand over £30,000 the chances are that you are not going to get it back and if you have two children then it can become expensive. Rather than using your capital as a parent, you use your income."
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