Hitachi Capital offering loans of up to £50k to parents of first time buyers.

Hitachi Capital, the Financial Services group has teamed up with Britain's biggest housegroup, Barratts, to offer loans of up to £50,000 to the partents of first-time buyers in an innovative attempt to boost Britain's flagging housing market, according to reports in the Daily Telegraph.

Hitachi's £1bn fund will offer 12-year unsecured loans for parents to use as part of the deposit for their child's new home.  The scheme aims to bring back to the market first-time buyers, who have been priced out by mortgage lenders requiring deposits of up to 20%

 

The average age of first-time buyers has jumped to 37, with lenders reluctant to offer higher loan-to-value mortgages.  This has let to "the bank of mum and dad" becoming increasingly prevalent as a source of funding for deposits.  However, many parents cannot afford to support their children or only do so by remortgaging their own home.

Read more..

We use cookies on our website to support technical features that enhance your user experience.

We also use analytics & advertising services. To opt-out click for more information.