First-time buyers relying on parental financial help
Parents are helping their children onto the first rung of the property ladder.
Increasing numbers of first-time buyers looking at taking out a home mortgage are relying on financial help from their parents.This is according to new research from Lloyds TSB, which revealed that almost one in four mums and dads (23 per cent) are intending to use their savings to help their children buy their first home.
On average, these parents have a total of £41,000 saved in order to provide financial assistance.
Lloyds TSB commercial director of mortgages Stephen Noakes said that the current state of the housing market represents a "real opportunity" for those looking to get on the first rung of the property ladder.
"Housing affordability is back to the level it was in 2003, so many parents with grown-up children want to help them take advantage by using their savings," he explained.
More first-time buyers have been able to secure cash back or fixed rate mortgage as the housing market begins to improve. This was true of 19,200 people in August, which compares favourably to January's total of 8,600.
During the second quarter of this year, first-time buyers accounted for two in every five, or 38 per cent, of house purchases.
The poll also revealed that parents are intending to help each of their children equally, with 93 per cent saying that this was the case.
It was announced by the British Bankers' Association today that the number of loans that had been approved for house purchases had risen to levels last seen at the end of 2007.
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