First-time buyers looking to enter the property market should be wary of a new mortgage scheme that allows parents to put down a deposit to help their children buy a new home.Timothy Lambert, head of consulting at property investment consultancy Ducalian, claims that this type of lending is simply more debt per household.The scheme from Hitachi Capital allows parents to apply for an unsecured personal loan of up to £50,000, meaning the typical buyer will only need to raise a deposit of five per cent.Mr Lambert said: "We may find once again that people have bitten off more than they can chew in order to own a home. The only difference this time, is that the parents will have to bail out their children on the loan."Buyers still need to save and must learn from what has happened these last four years."He added that this route should only be taken if buyers plan to add value to the property.John FieldmanHaving worked in the city for 19 years, John's main focus is interest rates and corporate finance.
Belmont Thornton Ltd. is regulated by the Ministry of Justice in respect of regulated claims management activities; our registration is recorded on the website www.claimsregulation.gov.uk number 18273
Belmont Thornton Ltd. is incorporated in England and Wales, Company number 6621233, whose head office and registered office is at Suite 2, Unit 25, The Coda Centre, Munster Road, London, SW6 6AW. VAT Registration number 945 3375 06.
Belmont Thornton Ltd is registered with the Information Commissioners Office to ensure compliance with the Data Protection Act 1998 registration number Z1728023 and holds a Credit Consumer License issued by the Office of Fair Trading license number 634655.
Please note that calls may be recorded and email traffic monitored for the purposes of security and staff training.
* Belmont Thornton operates on a "No Win No Fee" basis. This means that there are no upfront costs to pay. Our fee only becomes payable on a successful outcome of a claim. A cancellation fee is payable if you decide that having instructed Belmont Thornton to act on your behalf, and after 14 days of signing your Letter of Authority, you do not wish to continue pursuing your claim with us. The cancellation fee is the reasonable costs incurred for the work undertaken. Please see our terms of engagement.