Family help for FTBs

05-Nov-2008

More first-time buyers (FTBs) are turning to their family to help them get a good mortgage deal in the current financial climate, it has been suggested.

According to the Council of Mortgage Lenders (CML), more FTBs are using money from their parents and grandparents to help them pay a larger deposit.

This is because FTBs have to pay larger deposits to meet the criteria of cautious lenders in the current financial climate, the group said.

However, the CML warned that parents and grandparents might be unwise to draw on equity in their homes amid the economic downturn to help their children get onto the property ladder.

Mortgage industry expert Julia Gleave recently noted that FTBs with good credit ratings have a significant advantage in the current mortgage market, suggesting that loans from family members might be more beneficial in some circumstances than taking out a bank loan.

"For people with good credit records, securing a good new mortgage deal is unlikely to be a problem," Ms Gleave wrote in a recent blog published at Articlesbase.

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