Parent loan for new Barratt home available for first-timers

Published 19th Jan 2011

Parents wanting to help their children buy a new Barratt home can apply for a loan worth up to £50,000.

The loan, which would be used to fund the child’s deposit, is fixed at 5.4 per cent and must be repaid within 12 years.

There are no early repayment charges and unlimited overpayments are allowed at any time.

It means parents can avoid re-mortgaging their own home in order to raise the cash.

Many young people are being ­prevented from buying a house because they cannot afford to save a 20 per cent deposit while renting.

Under the terms of the loan, provided by Hitachi Capital, borrowers would obtain an 80 per cent mortgage but only need to save a 5 per cent deposit, with the ­remaining 15 per cent met by the parents’ loan.

It can only be used to help buy homes from Barratt Homes, David ­Wilson Homes and Ward Homes.

Parents must be UK residents, homeowners and have a good credit history.

Source: ' ThisIsMoney '

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