Mortgage News First Born First Time Buyers Get More Help From Parents 1118
First-born first time buyers get more help from parents
06 February 2008 / by Rachael Stiles
The study found that parents spend more time helping first-born children who are first time buyers to choose their home and move into it compared to younger children in the family, however, second and third-borns are more likely to receive larger contributions than first-borns towards their deposit.
Abbey’s research found that 17 per cent of first-borns are given money towards their first home, compared to 12 per cent of second-born children and nine per cent of third-born kids. And despite complaining that their parents are stricter on them than the other siblings, it seems first children reap the benefits of their parents’ time too with 31 hours spent helping the eldest compared to 19 hours for ‘numbers two’ and just 14 hours with the baby of the family.
However, while first-borns have a higher chance of getting an average deposit of £3,346 to move into their first home, second and third-born children will get more – £7,899 and £9,715 respectively.
The trend appears to depend on two things: more disposable income for parents to spend by the time that the younger children are ready to get onto the property ladder and get a mortgage, and rising house prices which will also affect the amounts gifted by parents to their second and third offspring.
Nici Audhlam-Gardiner, head of mortgages at Abbey, comments: “Most parents tend to think they are very fair when it comes to financial gifts to their children, but what’s fair in one circumstance may not be fair in another.
“In recent years, property price growth has been so strong that even a gap of two or three years can mean a big financial difference when it comes to raising a deposit, even if the children choose to live in similar areas. Now that house price growth is slowing, we may find that parents’ gifts to siblings even out a bit.”
While favouritism may well be evident when it comes to paying their children’s deposits, spare a thought for only children. Abbey Mortgages research found that despite being given slightly more money for their first homes than first born children at £3,621, they receive far less time from their parents – just 12 hours of their parents’ time to help them choose a home and move in, 14 hours less than a third born child.
© Fair Investment Company