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Mums the word when it comes to borrowing

Research from the Chelsea shows twice as many people saying they would ask to borrow money from their mum than their dad.

The research also shows dads in the South-West are set to hold on to their money the longest with only 3.6% of people quoting them as first choice.

Fathers in London need to start saving – they are the most approachable, getting 17.9% of votes.

However in Yorkshire, mums are five times more likely to be approached than dads with 38.5% opting for a female helping hand compared to 7.7%.

While 22.4% of men think women are better at managing money, only 4.2% of women think men are better.

However, Welsh women were perceived to be the worst at managing money gaining only 28.9% of the votes compared to their South-West counterparts who got 56.4% of the votes.

South-West women are seen as money wizards but men in the same region only got 7.3% of votes, half that of the male population in London.

The research, carried out for the launch of Chelseas Helping Hand Mortgage also shows that 45% 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.

While some people would not consider this with anyone other than a partner, what about those who dont have a partner or even with partners income taken into account still dont have the ability to borrow enough for a house?

It seems that parents are the first choice with 47% of people saying they would choose them over 33% who would choose siblings and 12% who ask their friends.

The Helping Hand product is available to the intermediary market 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 – a rare feature in many first-time buyer products.

Another favourable feature of the product is the term being based on the childs age rather than the parents- this gives more flexibility and independence to the purchasers.

Tom Gurrie head of intermediary sales at Chelsea, says: We are delighted to work with Openwork on the launch of this new product.

As well as having a strong distribution network, theyve clearly demonstrated their commitment to the mortgage market and a willingness to work closely with lender partners.

Paul Shearman, mortgage proposition director at Openwork, adds: 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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