Skip to content

Growing number of homeowners had help from Bank of Mum and Dad

Some 11% of current homeowners had financial help from the Bank of Mum and Dad, demonstrating that it’s becoming an increasing common phenomenon, research from The Mortgage Lender has revealed.

Half of current homeowners benefitted from some assistance, with others using a Help to Buy ISA (6%), a LISA (6%), a guarantor mortgage (6%), a Rent to Buy scheme (5%), or shared ownership (6%).

Some 42% of this group felt that the government has not done enough historically to support first-time buyers onto the ladder.

Chris Kirby, head of key accounts & specialist distribution at The Mortgage Lender, said: “With rents continuing to rise in most areas of the U.K, many prospective buyers will likely feel trapped between spending more renting and high buying costs, which can lead to significant delays in being able to purchase a property, and/or having to make compromises on what or where they buy.

“On top of this, the lack of information on government schemes has led to 26% of those surveyed feeling overwhelmed with what first time buyer scheme they should use, which makes it even more difficult to ascertain a path onto the property ladder.

“Those looking to get onto the housing ladder should take time to research what options are available to them, whilst also seeking the advice and guidance of a mortgage broker, who will be able to help clarify what support there may be, but also how best to achieve the level of borrowing they’re looking for sooner rather than later depending on their situation.”

Topics

Related