Almost a quarter of prospective homebuyers (24%) are reliant on family members to fund their deposit for their first home, according to a recent report by KIS Finance.
The report, entitled “The truth behind why so many of us need help to buy our first home”, also showed that almost half (44%) of 35-44 year olds have been unable to purchase a house with 17% of this group relying on help from family.
For those aged 45-54, 28% have been unable to purchase their first home, with 7.6% relying on help from family.
Holly Andrews, managing director at KIS Finance, said: “As experienced brokers, we’ve seen numerous changes in the mortgage market over the years, but have never known a more difficult time for first time buyers to get onto the property ladder.
“With lending criteria tightening up so much, including the size of deposit required, without any real change in peoples’ general earnings, unfortunately it seems that having to rely on financial help from others to get onto the property ladder has become the new norm.”
In a further survey by KIS Finance, it found that unsuccessful mortgage applications were primarily because of low income, adverse credit history and lack of employment security.
Over half (57%) of those aged 55-64 were declined a mortgage, whilst 63% of 18-24 year olds were also declined in June this year.
Andrews continued: “We are seeing less and less people able to buy their first home simply from their own funds and, often, even the family members they are borrowing from are having to take out loans to be able to help – equity release and remortgages being common sources of extra funding.
“It’s also not just young adults anymore who are struggling to pull a deposit together.
“Large percentages of 35 to 44 and 45 to 54 year-olds still haven’t been able to purchase their first home even though they are planning to. This is a big indicator as to how hard it is to save money in the current financial climate.”