Should parents buy children a property?
Interest rates on buy-to-let mortgages can be quite high, a writer has recently claimed.
The Guardian's Virginia Wallis was responding to a recent letter from one mum who was considering raising a mortgage and buying a house for her daughter, who currently has two years left of an individual voluntary arrangement (IVA).
Ms Wallis noted that a buy-to-let mortgage - where the parent would own the property and rent it out to her daughter - could be an expensive option.
"Some buy-to-let lenders won't give mortgages if the prospective tenant is a family member, so you may be limited in your choice of lender," she added.
Young people with an IVA may find that a more affordable option than turning to their parents for mortgage help could be to look for property to rent in Blackheath or other parts of London - particularly as house prices in the capital are so high.
Penny Anderson recently wrote in the Guardian that people who need to be flexible as part of their job may also find that renting is an ideal solution.
Written by Chris Price
Published 9th September, 2009
© 2009 Estates IT Limited
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While parents may wish to buy a home for their children, young people who are not looking for a permanent base may prefer to rent.