Bank of Mum number one

Kay McLellan

June 16, 2006

Other findings from the research include:-

  • Dads in the South West are set to hold on to their money the longest with only 3.6 per cent of people quoting them as first choice. Fathers in London are the most approachable, getting 17.9 per cent of votes.
  • Yorkshire mums are five times more likely to be approached than Yorkshire dads (38.5 per cent vs 7.7 per cent)
  • While 22.4 per cent of men think women are better at managing money, only 4.2 per cent of women think men are better.
  • Welsh women were perceived to be the worst at managing money gaining only 28.9 per cent of the votes compared to their South West counterparts who got 56.4 per cent of the votes.
  • South West women are seen as financially capable but men in the same region only got 7.3 per cent of votes, half that of the male population in London.

The research, carried out for the launch of Chelsea’s Helping Hand Mortgage also shows that 45 per cent of people, who feel comfortable asking a relative to lend them money, would be happy to borrow it for a mortgage deposit. This is twice as many as those who would ask to borrow money for essentials such as food or drink.

For many, the only way they can own their own home is by taking out a joint mortgage. But for those without a partner, iIt seems parents are the first choice with 47 per cent of people saying they would choose them over siblings (33 per cent) and friends (12 per cent).

Chelsea’s Helping Hand Product is available to the intermediary market exclusively through Openwork and offers an alternative to mainstream guarantor mortgages for borrowers and their parents. By using the income of a parent (or close family member), the overall borrowing capacity is enhanced. The mortgage can include up to three incomes while having up to four applicants. Another feature of the product is the term being based on the child’s age rather than the parents, which gives more flexibility and independence to the purchasers.

“We are delighted to work with Openwork on the launch of this new product” said Tom Gurrie, head of intermediary sales at Chelsea. “As well as having a strong distribution network, they’ve clearly demonstrated their commitment to the mortgage market and a willingness to work closely with lender partners”.

Paul Shearman, mortgage proposition director at Openwork said “We are proud to work alongside Chelsea on the launch of this new product. Our mortgage advisory panel expressed a desire to work closer with Chelsea on exclusives and new products and this exciting development offers the opportunity to do just that.

The ‘Helping Hands’ mortgage offers flexibility and independence, coupled with the security of a reputable high street name”.

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