An overwhelming majority – 84% – of first-time buyers rely on financial support from their parents. This figure has more than doubled since 2005, when just 38% turned to their parents for help.
Research from the Yorkshire and Clydesdale banks also found that first-timers aren’t just relying on parental support to get on the housing ladder. Just under half of first-time buyer properties were bought with a joint income, whether with a friend or as part of a couple.
Steve Reid, retail director for Clydesdale Bank, says: “It is becoming increasingly commonplace for first-time buyers to require financial help from their parents when buying their first home.
“At Clydesdale and Yorkshire Banks, we recognise that first-time buyers are vital to keeping the property market moving and are committed to helping them with our range of competitive products”.
Unusually, Clydesdale and Yorkshire are still offering a 95% loan to value (LTV) mortgage – even though the three year fixed rate of 6.99% is above that which borrowers with bigger deposits can get.
There is an arrangement fee of £599, and one free valuation survey.
With a 10% deposit, the three year fixed rate is 5.99% (with a £599 fee) or fixed at 6.29% with no fee.
Earlier this week, research from Santander revealed that in the last 12 years, the typical first-time buyer has put down 17% and taken 29 months to get their deposit together.
Santander also found that nearly a fifth of all first-time buyers in this period put down a deposit of six to 10% on their first home – while 12% saved up deposits of between 11% and 20%.