Majority Of First Time Buyers Need Parental Support

Over 80% of first time buyers now need parental support, more than double the number that relied on the ‘Bank of Mum and Dad’ in 2005.

Buying a first home is clearly becoming more of a stretch with so many people having to turn to their parents for support in raising their mortgage deposit.

According to Clydesdale and Yorkshire Banks an overwhelming majority of 84% need their parental support.

Many first time buyers also have to turn to buying a house with a joint income, either linking with a friend or as a couple.

First time buyers are vital to the housing market and need mortgage products that support them. As Steve Reid, Retail Director for Clydesdale Bank, said: “The Bank is one of only a handful of lenders still offering a 95% mortgage, which is fixed for three years at an initial rate of 6.99% (5.5%APR) before moving to the standard variable rate after this period.”

This mortgage has a £599 arrangement fee and free valuation.

The Bank also offers two 90% mortgages fixed for three years:

• 3 year fixed rate mortgage at 5.99% with a £599 arrangement fee, plus free valuation (5.2%APR)
• 3 year fixed rate mortgage at 6.29% No arrangement fee, plus free valuation (5.2%APR)

You can get more information from www.ybonline.co.uk or www.cbonline.co.uk

MoneyHighStreet.com comment: A wider choice of first time buyer mortgage products has got to be welcomed.

As well as these 90% and 95% LTV mortgages from Yorkshire and Clydesdale banks, Santander too recently launched a 90% LTV mortgage although to qualify for this you need to be a Santander First Home Saver account customer too – perhaps not a bad thing when you realise that on average first time buyers save for 29 months to build a sufficient deposit for their home.