2/3 of First Time Buyers Borrow Money from Parents

According to new research from Clydesdale and Yorkshire Banks, almost two thirds of First Time Buyers received help from their parents in saving a deposit for their first property.

The Annual First Time Buyers Research from the banks highlighted that 63 per cent benefit from financial support when taking their first step onto the property ladder. Receiving help was key for 50 per cent of respondents with 28 per cent receiving a loan and 22 per cent benefitting from the gift of a deposit from their parents or another family member.

Potential homeowners in the Midlands are benefiting wfrom the highest levels of support with 67 per cent receiving help, closely followed by London and the South East. The lowest levels of help are in the East, however still more than half (52%) have had support in saving a deposit.

30 per cent of those surveyed had received between 10 and 20 per cent of the value of their new home, with a further 37 per cent benefitting from between 5 and 10 per cent.

25 per cent of the First Time Buyers surveyed said it took between one and two years to save a deposit, however for 18 per cent it took between four and five years to manage to put aside the required deposit for their first property.

Clydesdale and Yorkshire Banks have just lowered the rates on their First Time Buyer mortgages. Those looking to buy their first home can now benefit from a 95 per cent LTV mortgage with a rate of 4.99 per cent. A new LTV tier at 90 per cent has also been introduced at 3.99 per cent.

First time buyers taking the new 3 year fixed rate deals will also benefit from the banks’ current offer of no arrangement fee, saving £999, free standard valuation and £250 cash back on completion.

Repurposed from What Mortgage