Once the kids have left home, even got that university education and hopefully an interesting job in their chosen field then it’s the dreaded deposit for their first home. Enable’s Independent Financial Advisors come across many families who are trying to support their children get that firs foot on the ladder but it’s wise to help the children have as much of an understanding of financial planning a s possible.
Ironically for many youngsters the lack of credit history can be a bit of a stumbling block. They may even have healthy finances and you might have always been in the black but if they have never had their own phone contact or paid a utility bill or used a credit card they may have little or no credit history. Never having had a credit history makes you a poorer candidate for a mortgage than someone who has three credit cards and pays the minimum amount each month.
Banks want to see they repayments can be managed overtime before they take the risk and loan money particularly on first properties so it is important to build up a credit history. So as well as saving to support your children experienced IFA's like those at Enable would also suggest allowing your children to build up a credit history with their won bank account that manages sensible and regular payments say on phones or credit cards. Learning about credit history is an invaluable life lesson to teach them alongside how to manage their finances.
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