Paul Clitheroe has had many years experience helping people with their finances and today he has some sage advice for YOURLifeChoices member Mary who is considering taking a loan to help her son buy a house.
My son has saved really hard to buy his own place but is a little short on the deposit. I’m considering taking out a small personal loan to help him but worry I am over-extending myself. He says he will help to pay it back but is this the best way to help him?
A. Provided by Paul Clitheroe
This sounds like a really bad idea to me. If he is stretched and you are stretched, I reckon that this could turn really ugly. If he is under pressure to pay his mortgage and help with your loan I fear that, as is so often the case, your relationship with him could suffer as much as your finances.
Sit down with him and explain you are stretched and a personal loan will put you under pressure. If he can afford to help you with a loan, he can use this money to build his deposit, it may just take a little longer, but would be the best for everyone concerned.