First time buyers 'relying on parental help'

12-Nov-2008

Many first time buyers (FTBs) are reliant on parental help as the cost of mortgages has increased for borrowers.

Research by mortgage website mform.co.uk showed that property buyers taking out their first mortgage paid 0.75 per cent more for a loan they would have had to pay in November last year.

Durign this 12-month period, the Bank of England has reduced interest rates from five per cent to three per cent.

The study showed that FTBs need larger deposits to get better deals and half of those looking for their first mortgage are relying on financial help from their families.

Francis Ghiloni, marketing and business development director of mform.co.uk, said: "It defies logic that the best fixed rate deals for first-time buyers are currently more expensive than a year ago when base rates have been cut so dramatically."

This month the BoE cut interest rates by 1.5 per cent - the largest reduction since 1981 - after slashing the base rate by 0.5 per cent in October in an effort to tackle the economic downturn.

FirstRungNow.com - how to buy a house, from finding your first flat or first house, first time buyer mortgages, shared ownership, buying with friends, gifted deposit, part buy part rent - all a first time buyer could possibly need.

Family help for FTBsUK interest rates cut to 3%FTBs 'positive about market future'

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