Eight out of 10 first-time buyers getting loans from the bank of Mum and Dad. A massive 84% of first-time buyers under 30 need a loan from their parents, the highest number ever recorded by the Council of mortgage Lenders. The number has more than doubled from those getting help in 2005, when only 38% needed money from their parents.
More than eight out of 10 first-time buyers can only get on the property ladder by getting a loan or cash handout from their parents. Many banks are demanding massive deposits of up to 40% to get a decent mortgage rate and with such stringent borrowing conditions turning to Mum and Dad is the only option.
Banks are attempting to reduce the number of buyers defaulting on mortgages and foreclosures, but with the downturn in the economic climate and rising unemployment more than 100 people a day are still losing their homes.
The dream of owning a home is now just that - a dream for many. A large number of would-be first time buyers are opting to rent instead and many young couples are delaying getting married or starting a family until they can afford a home, many years down the line.
The average deposit for a first time buyer is now £34,000, compared to only £13,000 back in August 2007.
The report is a fresh blow for first-time buyers who were hoping to benefit from the recent falls in house prices but still cannot afford a house, deposit house prices being at their lowest for a long time. And economists have predicted that prices could fall a further 20 per cent unless confidence in the economy picks up.
The number of first time buyers in August 2007 when the credit crunch officially began was just under 35,000. Now it stands at 19,400.
If you need help with mortgages then go along to Whathouse.co.uk Property portal for free independent advice from mortgage advisers.
More than eight out of 10 first-time buyers can only get on the property ladder by getting a loan or cash handout from their parents. Many banks are demanding massive deposits of up to 40% to get a decent mortgage rate and with such stringent borrowing conditions turning to Mum and Dad is the only option.
Banks are attempting to reduce the number of buyers defaulting on mortgages and foreclosures, but with the downturn in the economic climate and rising unemployment more than 100 people a day are still losing their homes.
The dream of owning a home is now just that - a dream for many. A large number of would-be first time buyers are opting to rent instead and many young couples are delaying getting married or starting a family until they can afford a home, many years down the line.
The average deposit for a first time buyer is now £34,000, compared to only £13,000 back in August 2007.
The report is a fresh blow for first-time buyers who were hoping to benefit from the recent falls in house prices but still cannot afford a house, deposit house prices being at their lowest for a long time. And economists have predicted that prices could fall a further 20 per cent unless confidence in the economy picks up.
The number of first time buyers in August 2007 when the credit crunch officially began was just under 35,000. Now it stands at 19,400.
If you need help with mortgages then go along to Whathouse.co.uk Property portal for free independent advice from mortgage advisers.
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