Living with parents 'simplest solution for FTBs'

02-Mar-2009

One of the simplest ways Britons can save up enough money to afford a first-time buyer (FTB) mortgage is by living at home with the parents, an expert has said.

According to Louise Cuming at price comparison website Moneysupermarket, paying board to relatives would help prospective first property buyers get used to the discipline of monthly repayments and it is also cheaper than renting.

"Starting to teach the value of saving sooner rather than later is vital," she said.

"If renting is unavoidable, it is still possible to save a substantial amount every month towards a mortgagedeposit," Ms Cuming added.

The expert advised FTBs to make regular payments into both a high-interest current account and a savings account.

Ms Cuming noted that first property buyers need to be able to offer a deposit of at least ten per cent in the current economic climate.

Her comments come after estate agent William H Brown last week revealed in the Norwich Evening News that some parents were offering to pay ten per cent deposits worth around £12,000 to assist their offspring's chances of getting on to the property ladder.

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.

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