Use CTFs to help kids get a mortgage, parents advised
10/08/2006
Parents of younger children are being urged to save money regularly, over a long period of time, in order to be able to afford to help them buy their own property in years to come.
New research from the Children's Mutual indicates that if the Child Trust Funds had been formed 18 years ago and boosted with £36 a month, the average sum needed to buy a child their first home would have been reached.
This time period would be enough to have saved the average £17,677 that first-time buyers need to get their inaugural mortgage.
David White, chief executive of the Children's Mutual, said: "Research is showing that almost 50 per cent of parents are planning to help their children buy their first home.
"But £17,677 is a lot of money to find. For parents of younger children, saving regularly over the long term can help to avoid the headache of finding a larger lump sum as they head toward retirement age."
He added: "The Child Trust Fund has been designed so anyone can contribute financially to a child's future and we are seeing many grandparents and other family members helping to top up accounts."
Child Trust Funds are set up for children born on or after September 1st 2002, who receive a £250 voucher to start their account.
The money gathers interest over the first 18 years of the child's life, enabling them to have some savings to begin adult life with.
New research from the Children's Mutual indicates that if the Child Trust Funds had been formed 18 years ago and boosted with £36 a month, the average sum needed to buy a child their first home would have been reached.
This time period would be enough to have saved the average £17,677 that first-time buyers need to get their inaugural mortgage.
David White, chief executive of the Children's Mutual, said: "Research is showing that almost 50 per cent of parents are planning to help their children buy their first home.
"But £17,677 is a lot of money to find. For parents of younger children, saving regularly over the long term can help to avoid the headache of finding a larger lump sum as they head toward retirement age."
He added: "The Child Trust Fund has been designed so anyone can contribute financially to a child's future and we are seeing many grandparents and other family members helping to top up accounts."
Child Trust Funds are set up for children born on or after September 1st 2002, who receive a £250 voucher to start their account.
The money gathers interest over the first 18 years of the child's life, enabling them to have some savings to begin adult life with.
