Parents set to profit on children's first homes

The West Midlands' leading house builder has unveiled a ground-breaking new scheme to reward the growing number of parents who put down a deposit on their children's first home.

David Wilson Mercia will pay the interest which parents would have earned on their savings at a highly competitive rate of five per cent - well above the Bank of England's base rate.

The offer means that parents who want to help their offspring get onto the first rung of the property ladder can do so without losing a penny of interest on their savings.

Under the scheme - which is appropriately called 'parent power' - David Wilson Mercia will pay five per cent interest per annum for a full five years on a deposit of up to 20 per cent.

For example, if a parent puts down a maximum £24,000 deposit on a property costing £120,000, they will receive the equivalent of £1,200 a year in interest for five years. This is paid in a lump sum of £6,000 at the time of completion.

"The reality of high house prices is that a growing number of parents now put down a deposit to help their son or daughter to buy a property of their own," says Carole Ashworth, sales manager for David Wilson Mercia.

She adds: "If that money is used to fund a deposit, it means that it isn't in a high-interest savings account earning money for Mum and Dad.

"This new scheme gets around that problem because you can pay a deposit on a new David Wilson home for your children and we will pay you the interest you would have earned on the money."

The offer is not restricted to parents and is also available to other family members or friends who want to help a first-time buyer move into a home of their own.

David Wilson Mercia is currently building a selection of homes at its developments in the West Midlands. These include:

Waterside Walk in Water Reed Grove, Walsall, includes a selection of two-bedroom apartments priced from £89,950 and two-, three- and four-bedroom houses priced from £137,500. For details call 01922 491 419.

The sales offices are open Thursday to Monday from 10am to 5pm, alternatively log on to www.dwh.co.uk or call the hotline on 0844 811 3322 which is open seven days a week from 8am to 9pm.