Parents give money to their Kids who are quite mature to take decisions of their life. According to the study many parents remortgage and give an adequate amount of money to their kids. Bank of Mum and Dad encloses an average amount of money to children from the remortgage money. Nearly one out of ten children receive money from their parents. Research from the Money Supermarket shows that more than 15% of parents give some of the amounts to their children. The mortgage debt equity is released under the name of children.
On third of them which is close to 32% said that they would save money for the future rather than creating a financial burden on their child. One-quarter of the total said that their children need the money quickly. About 22% said that their children were laden with debts and they didn’t want to add more money to the previous debt by remortgage.
Where Did They Spend All The Money?
- One-third of the total of grown-up individuals spend money on saving it for the future by depositing the money at the home.
- Other use it for various purposes like traveling, buying a new car or use the money for daily needs and household need.
One of the spokespeople from the MoneySuperMarket Consumer Affairs recently said that their research found that 15% of total parents released their equity to help kids. The remortgage amount is given completely to the Children’s. This situation can only be done if the value of the property has gone up and in the future, they can afford them as repayments.
Some other things which are related to the remortgage play an important role in this whole process. Costs are associated with remortgaging such as arrangement fees for the loans, which may soar up to high value. Other additional fees include:
- Legal Fees
- Admin Fees
- Valuation Fees
- Consultation Fees
Parents need to be more practical and rational before realizing the equity amount or mortgage their property for the kids. These types of decisions take time and proper consideration from the legal attorneys because any types of factors are included in this process. They need to be realistic because if equity really helps their children they can release them. Some of the life events can’t be managed by the parents alone in that case they can take remortgage loan. If they can’t afford to manage the expenses on their own.
Remortgaging is considered as a bad option because it takes more time to repay back the amount with interest. There are some other alternatives to take the cash sum with less interest. It is important for the parents to consider all the alternatives before going for the remortgaging. The other options may provide easy and cheap loans with easy repayment terms. Parents always consider the best options for their kids. So in the case of urgent needs they can look up to the cash sum from local lenders.