First-time buyers working in pairs
29 June 2004
Financial assistance is commonplace in the property market with almost two thirds of first-time buyers (57 per cent) now buying with their partner.
Alliance & Leicester Mortgages' First Time Buyer research found that young people are becoming more pragmatic about finding ways onto the property ladder.
Only a quarter (24 per cent) of first time buyers said they were able to get onto the first rung alone, as such many are choosing to share the financial burden by buying with their partner.
The survey also showed that 42 per cent of first time buyers are relying on their savings fund the deposit.
The head of mortgages at Alliance & Leicester, Paul Cooper, acknowledged the financial difficulties many young people are facing and said: "It is encouraging that people are clearly saving up for the deposit."
However 58 per cent had to seek financial help from some other source, with almost a fifth (18 per cent) asking their parents to help foot the bill.
Close to a quarter (24 per cent) of first time buyers opted for a 100 per cent mortgage to cover their deposit.
When asked why they were buying, the overwhelming majority (67 per cent) responded by saying it was to get on the property ladder.
Only 22 per cent claimed they were buying in order to live with their partner.
For 38 per cent of those asked, they said mortgage payments would be cheaper than renting a property. A further 31 per cent are buying as an investment.