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Parents stepping in to help first-time buyers

25-Feb-2009

More first-time buyers (FTBs) are relying on parental help as they consider financial solutions to try and get on to the property ladder, estate agents have said.

Jason Butler of Gilson Bailey and Partners told the Norwich Evening News that over Christmas more parents were helping prospective buyers out by funding a deposit.

Some mums and dads were paying ten per cent deposits worth around £12,000, added Callum Taylor, area director of estate agent William H Brown.

The trend comes after figures from the Council of Mortgage Lenders showed that FTBs typically had to pay a deposit of 22 per cent in December, which was the highest proportion of the value of a first property in 34 years of available data.

Also, mortgage lenders have been forced to cut back high loan-to-value mortgage products after the impact of the credit crunch on the UK economy.

This means some FTBs have struggled to finance their first property purchase independently, despite house prices having fallen by 16.6 per cent in the 12 months ending January 2009, according to figures from Nationwide.

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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