Should I take a loan to help my son?

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.

Q. Mary
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.