Children increasingly need financial help from parents to get mortgage
Published On 28 February 2008
Young people are increasingly needing financial support from their parents to afford a mortgage and get on the property ladder, a new study has shown.Data released by Abbey Mortgages showed that one in seven first-time buyers needed cash from their parents to afford a home.
As a result, 4.6 million people have given their kids an average of £5,874 to get a mortgage and onto the property ladder.
What's more, one-in-16 first-time buyers have to take a loan from their parents to afford a property, and this typically amounts to £19,619.
"Buying a first property is an incredibly exciting experience and understandably most parents want to share in this milestone," explained Nici Audhlam-Gardiner, head of Abbey Mortgages.
"Because house prices have increased so much over the past few years, buying that first home is also a bigger and more daunting investment than it was for the previous generation so guidance is undoubtedly needed."
Recent research from CreditExpert.co.uk suggested that nearly half of the adult population in the country who do not already own a home believe they will never be able to afford a mortgage and property.
