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Cheap first time buyer mortgage deals

19/02/2008

A new report has shown that it will become easier for the younger generation to enter the property market due to cheap first time buyer mortgage deals being launched.

This will allow parents investments to help fund their children without being saddled with the burden of large inheritance tax.

Parents are providing the deposits for their children's first home. Growing difficulties for first-time buyers on jumping towards the property ladder has become a difficult task.

Mortgage manager for Bestinvest, Peter O'Donovan, an financial adviser, stated that mortgage lenders were becoming more aware of this growing market and were now changing their mortgage deals to meet people’s criteria.

"Nowadays there are certain mortgages where the parents' income can be used to assist the child. The parents have a choice, really, as to whether they put a big lump sum in to assist the child in borrowing the money, or they can use their income to assist the child in paying off the mortgage.

He added: "Even when the parent uses their income to assist with mortgage payments, the mortgage might be in three names."


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