First-time buyers borrowing £1.36 billion
25 May 2004
First-time buyers appear to be turning to family and friends to help them onto the first rung of the property ladder - borrowing a staggering £1.36 billion.
This figure is according to new research from Sainsbury's Bank, which noted the average amount borrowed by each first-timer was £1,552.
However, around 26,400 first-time buyers each received as much as £20,000 to £40,000 from their friends and family.
The home insurance manager of Sainsbury's Bank, Robert O'May, said: "First time buyers now represent around 30 per cent of overall mortgage lending which is down from 51 per cent in 1991. If house prices continue to rise, the pressure on parents to help their children on to the property ladder will grow."
Of those first-time buyers interviewed who borrowed money from friends and family, one in three (31 per cent) said they do not intend to pay them back and 28 per cent feel it will take them over three years to repay the money.
Sainbury's Bank believes that this is a trend that will continue, especially if property prices continue to increase across the U.K. It feels fist-timers will "become more reliant on their family" to help them raise a deposit.
Over the past two years, there have been around 881,000 first-time buyers, with their average age now coming in at 36.