An advertisement encouraging parents to remortgage their homes to help their children buy a house has been described as "a step too far" by consumers and groups representing older people.
The Educational Building Society advertisement encourages parents to "turn your house into their home" by borrowing against the family home to provide the 10 per cent deposit for their offspring's first house. Yesterday, critics of the advertisement claimed that it put parents under unfair and undue pressure to fund houses for their children.
The EBS brochure for the Familyfirst Homeloan states that "as parents of first-time buyers, you'll enjoy the rare satisfaction and peace of mind that comes from giving your children a helping hand when they need it most".
While the advertisement was legal and above board, it was morally questionable, said Mr Dermott Jewell, chief executive of the Consumers Association. Parents were placed in an awkward situation and could put them under "unacceptable pressure" from their offspring.
It was also attempting to change an age-old pattern where children saved their money, became financially independent and accepted their social responsibility.
Age Action Ireland has asked parents to think carefully before tying up their money in such a scheme.
Its spokesman, Mr Paul Murray, said people should consider the health of their pensions, the possibility of needing nursing care and the condition of their own homes before using their assets to secure other loans. If some young people were able to spend €100 on a night out, parents should question why they are being asked to fund their new house, Mr Murray said.
The Irish Senior Citizens Parliament has also urged people to think carefully about their commitments before using their money in this way.
