Some 63% of first time buyers in the UK help saving for a deposit, survey finds

Parents in the UK have an important role to play in helping their offspring onto the housing ladder with almost two thirds of first time buyers receiving help to save a deposit for their first property.

The Annual First Time Buyers research report from Clydesdale and Yorkshire Banks shows that 63% benefit from financial support when buying their first home.

The Bank of Mum and Dad was key for 50% of respondents with 28% receiving a loan and 22% benefitting from the gift of a deposit from their parents or another family member.

Potential home owners in the Midlands are benefiting from the highest levels of support with 67% receiving help, closely followed by London and the South East, both at 66%.

The lowest levels of help are in the East with 52% getting support in saving a deposit, followed by 58% in the South West and 59% in Scotland.

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

For 25% of first time buyers it took between one and two years to save a deposit, however for almost one in five, or 18%, it took between four and five years to manage to put aside the required deposit for their first property.

‘This research underlines the challenges that first time buyers can face when trying to take their first steps onto the property ladder. Many people can struggle to save a deposit and our survey highlights that a significant proportion turn to family and friends for financial support,’ said Andrew Pearce, retail director for Clydesdale and Yorkshire Banks.

‘Clydesdale and Yorkshire Banks have continuously supported first time buyers and have now offered 95% mortgages for more than 10 years and we hope our new lower rates will also help more customers to buy their first home,’ he added.

He also pointed out that Clydesdale and Yorkshire Banks aim to continue to remain supportive of first time buyers. Recent deals include lowering the rates on their first time buyer mortgages. Those looking to buy their first home can now benefit from a 95% LTV mortgage with a rate of 4.99%. A new LTV tier at 90% has also been introduced at 3.99%.

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