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Start putting money aside for children's mortgage

Date: Mon, 13 Jun 2005

Parents should consider starting to save for their children's first properties as soon as possible, according to The Children's Mutual.

The child saving specialist believes that parents should begin saving in order to avoid having to remortgage their own homes in the future.

The Children's Mutual estimated that if parents had saved £50 a month over the last 18 years they would now be collecting a lump sum of £26,000 - enough for a substantial deposit on a property.

"With the average deposit on a first home now £16,284 I'm sure most parents would be delighted if they had a lump sum of £26,000 to give their child a financial headstart into adult life," said David White, chief executive of The Children's Mutual.

Mr White added that saving regular small amounts can enable parents to prevent future debts when attempting to help their children step on to the property ladder.

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