New reports show that 8 out of 10 first time buyers have to turn to their parents for help getting on the property ladder because banks and building societies will no longer give them a mortgage. It is now virtually impossible for anyone with a dream of buying their own home to do so without a loan from their parents or friends.
A survey showed that during 2011 84% of first time buyers under the age of thirty were loaned or given money from their parents to fund the deposit on a property. The Council of mortgage Lenders says this is the higher ever recorded figure on record and is more than double the number reported back in 2005, when only 38% of first-time buyers required financial help from their parents.
Without financial support from their family first time buyers hardly stand a chance of getting on the property ladder. Banks and Building Societies have tightened their lending criteria and to secure the best mortgage rates you now require a massive 40% deposit, compared with the usual 10% deposit. The average deposit needed to buy a starter home has increased from £13,000 in August 2007 when the credit crisis officially began to £34,000 in May 2012. Banks are trying to decrease the number of borrowers defaulting on mortgages and decrease the number of repossessions but in the process are pushing first time buyers out of the market.
Other scary statistics state that rising unemployment and the economic downturn means more than 100 people a day are being evicted from their homes.
First time buyers were hoping to benefit from lower property prices but with difficulties raising deposits and getting mortgages this is not the case and often these first time buyers are delaying buying a first home until they have saved a substantial deposit. And with many young couples waiting to get married and have children until they can own their own home it is having a knock on effect on family life.
If you require information on mortgages then visit Whathouse.co.uk Property portal for free independent advice from specialists in the field.
A survey showed that during 2011 84% of first time buyers under the age of thirty were loaned or given money from their parents to fund the deposit on a property. The Council of mortgage Lenders says this is the higher ever recorded figure on record and is more than double the number reported back in 2005, when only 38% of first-time buyers required financial help from their parents.
Without financial support from their family first time buyers hardly stand a chance of getting on the property ladder. Banks and Building Societies have tightened their lending criteria and to secure the best mortgage rates you now require a massive 40% deposit, compared with the usual 10% deposit. The average deposit needed to buy a starter home has increased from £13,000 in August 2007 when the credit crisis officially began to £34,000 in May 2012. Banks are trying to decrease the number of borrowers defaulting on mortgages and decrease the number of repossessions but in the process are pushing first time buyers out of the market.
Other scary statistics state that rising unemployment and the economic downturn means more than 100 people a day are being evicted from their homes.
First time buyers were hoping to benefit from lower property prices but with difficulties raising deposits and getting mortgages this is not the case and often these first time buyers are delaying buying a first home until they have saved a substantial deposit. And with many young couples waiting to get married and have children until they can own their own home it is having a knock on effect on family life.
If you require information on mortgages then visit Whathouse.co.uk Property portal for free independent advice from specialists in the field.
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