First-time buyers reliant on families
More than half (52%) of first-time buyers are relying on their families to financially help them buy their first home, research from Which? Mortgage Advisers has found.
A third (33%) are being given money towards the purchase while a quarter (26%) are receiving loans towards a deposit.
One in 10 (9%) are using a family members’ savings as security against their mortgage and 8% are co-buying with a family member.
First-time buyers are typically putting down a 17% deposit typically worth £36,000, with London buyers placing an average deposit of 19%, or £76,000.
David Blake, executive adviser technical specialist from Which? Mortgage Advisers, said: “Taking your first step onto the property ladder can be a daunting and expensive experience.
“It’s important to talk to an independent mortgage adviser at an early stage, to understand how much you’re likely to be able to borrow and how much you’ll need to save.”
First-time buyers have been offered a number of government lifelines to help them get on the housing ladder.
They can now take out a Help to Buy ISA, which allows buyers to receive a 25% government bonus on the total saved between £1,600 and £12,000 when purchasing their first home.
And as announced in the Autumn Statement London buyers will soon be able to take advantage of the Help to Buy London scheme, where buyers with a 5% deposit will be lent a 40% interest free loan by the government for five years.