CML: Parents helping out FTBs
20/02/2006
Half of Britain's first-time buyers (FTBs) seek financial help from their parents to get a foot on the property ladder, according to new figures.
This significant proportion need help in order to cover the cost of their deposits and so ask mum and dad for help.
However, a lot of this help is coming from parents' own housing as many of them draw down money from their property in order to help their children out, according to research from the Council of Mortgage Lenders (CML).
This practice has become more common in the past few years and now 50 per cent of homebuyers buy properties with deposits higher than the savings they have.
"For some home-owners, helping out their children with a mortgage deposit may represent an efficient use of funds, in the light of low returns on alternative investments," said James Thatch, senior statistician at the CML.
"For others, the assistance may not represent an investment decision so much as a case of the family 'pulling together' to enable the younger generation into home-ownership."
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