Family funding helps first time buyers

18-May-2005

First time buyers are increasingly looking to other family members when finding a deposit or finding money for a mortgage.

And according to Bradford and Bingley, over ten per cent of aspiring homeowners are now taking out guarantor policies, whereby their parents guarantee the payments.

Click here for advice on first time buyer mortgages or to find out how much you can borrow and how much it will cost you, from the UK's leading High Street Brokers, Bradford and Bingley

Research carried out by the building society found that as many as one in six aspiring first time buyers have been given money by members of their family to help them when finding a deposit last year.

At the same time, ten per cent of first time buyers entered into joint ownership agreements with their parents to find an alternative way onto the property ladder.

See what's in our unique, comprehensive and detailed joint ownership guide

Bradford and Bingley's mortgage development manager, Duncan Pownall, commented: "Our research shows how reliant first time buyers are on their parents and with property prices remaining high, there is little doubt that this trend is set to continue."

He pointed out that the mortgage market has "increasingly responded" to the difficulties of aspiring homeowners looking to get on the property ladder, stating that many companies now offer a range of creative mortgages specifically designed to give first time buyers a helping hand onto the property ladder.

Mr Pownall also revealed that he expects parent friendly mortgage schemes to increase as lenders realise the increasing numbers of first time buyers receiving parental support.

Click here for further information on finding a deposit

Click here to learn more about joint ownership

2008: May | Apr | Mar | Feb | Jan

2007: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan

2006: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan

2005: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar