One in six parents that remortgage their property do so to give money to their adult children, according to research from MoneySupermarket.
The average financial contribution is £9,050 per child, with 9% of parents handing down over £20,000.
34% of adult children put the money towards a deposit on their own home, 11% go travelling, 11% buy a new car, and 9% use it to pay for ‘everyday essentials’.
When asked why they give money away, 32% of respondents said they’d prefer to accumulate debt themselves rather than letting their children have such money worries.
26% said their son or daughter needed the money quickly and 22% said their child was already in debt with their bank and they didn’t want these debts to grow.
Remortgaging can be a smart move for those wishing to release equity in their homes, but it’s important that anyone contemplating such a step assess their financial circumstances in detail first.
When remortgaging your property, your home will need to have risen in value since you first obtained your mortgage and you’ll need to ensure you’re able to keep up with the new repayments.
It’s also important to consider the costs associated with remortgaging, as arrangement fees, admin fees and valuation costs can soon add up.
Remortgaging won’t be the right move for everyone, but by seeking professional support from a mortgage broker you can determine whether it’s a financially worthwhile move for you.
To find out how TaylorMade can help you through the remortgaging process, please >get in touch with our team today.
