First time buyers increasingly expecting parental help

24-Aug-2006

According to recent research by Abbey, first time buyers are increasingly living with their parents for a considerably length of time to save for a deposit; many parents are also expected to chip in from their savings to cover any shortfall.

"Many first time buyers need a significant leg-up from parents to have a realistic chance of getting on the property ladder," said Jeff Scott, head of mortgages at Abbey.

"It is commonplace for parents to take their children back into the family home so that they can save for a deposit, as well as helping them out with cash gifts or loans," he added.

Around 23 per cent of first time buyers expect their parents to either give or lend money for a deposit, with a further 12 per cent expecting parents to act as a mortgage guarantor, according to Abbey.

Expectations of where the money will come from seems to vary; 63 per cent of respondents think that parents will raid savings, while eight per cent believe their parents might remortgage their property.

Only six per cent of the survey's respondents think their parents might use a credit card to help.

In addition to mortgages, Abbey provides a range of financial products, including savings and current accounts, credit cards and investment products.

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