A newly conducted research by a leading high-street bank reveals that an increasingly large number of young home buyers are turning to their parents to get them a home. Estimates by the Council of Mortgage Lenders (CML) suggest that over 40% of the first time buyers since 2004 have been helped by their parents for buying their dream house. This suggests that almost half of the borrowers depend on their parents to get them a home.
Secured loans taken on the basis of the equity stored in the parent's house work the best guarantee for their children. The figures show that more than 23% of Brits, who already own homes, have received help from their parents. The loan in such cases is taken by the parents on their house, based on the equity available. The instalments are then paid by their children. This way, secured loans help borrowers to raise another home from an already existing home.
Cheap secured loans are thus helping youngsters to climb swiftly on the property ladder. Commenting on the research, CML head of research, Bob Pannell said: “Over the past few years, parents have been providing significant help to younger home-buyers and there is uncertainty about whether they can do even more."
cheap secured loans can be anything in between £5,000 to £250,000. Such a hefty amount can surely be enough to buy anyone a house. The repayment period on such loans is long one as well. So, the youngsters can easily pay the small instalments on their secured loans over a long period of time.
These loans also come with flexible repayment options as well. The borrower can choose from capped, fixed and variable rate of interest. Because of the low APR they attract, these are also called cheap secured loans. So, those of you who dream of buying a home, ask your parents to avail secured loans.
The author is a business writer specializing in finance and credit products and has written authoritative articles about personal loans,
secured loan. He has done his masters in business administration and is currently assisting Shakespearefinance as a finance specialist.
