An increasing number of first-time buyers are cutting financial ties with their parents and making their first foray into the housing market alone, new research from Abbey shows.
Although one in ten first-time buyers ask parents for financial assistance when buying their home, that figure is only half what it was one year ago – 23 per cent.
Nici Audhlam-Gardiner, head of mortgages at Abbey, described the trend as "a positive indication that first-time buyers are finding alternative ways of funding their homes".
But many are not, in fact, going it alone. Buying with peers, which has long been conventional for young couples, is becoming increasingly common among pairs or groups of friends.
The club-together strategy may not be foolproof, Moneyfacts.co.uk's Julia Harris warned earlier this month, pointing to the potential for arguments and disparity in financial circumstances.
Nevertheless, first-time buyers are being pushed towards less than ideal measures after the revelation earlier this month from the Council of Mortgage Lenders that they now pay a higher proportion of their income than ever before on servicing mortgage repayments, at 17.9 per cent.To learn more about first-time buyer mortgages, click here.
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