First-time buyers 'turn to family to get onto the property ladder'
Published On 25 April 2008
First-time buyers are increasingly turning to family to help them raise the deposit they need to get a mortgage and onto the property ladder, an industry expert has said.Council of Mortgage Lenders (CML) spokesperson Bernard Clarke was commenting after Abbey withdrew the last of its 100 per cent mortgage products, becoming the final major UK lender to do so.
As a result, all first-time buyers need to have a deposit in order to get a mortgage.
Mr Clarke said that this meant that first-time buyers are turning to parents and other relatives to get the money they require.
"It's only open to those who are able to call upon that help, and whose relatives are able to provide it. But we have seen [parents] who have enjoyed equity growth in their own property over a period, being able to draw on that to help relatives who are first-time buyers with a deposit," he added.
"That's great for those who are in the fortunate position of having relatives who are able to and willing to do that - but not everybody's in that position."
Recent figures from the National Association of Estate Agents (NAEA) indicated that the percentage of first-time buyers getting onto the property ladder in March dropped from 11.7 per cent to 8.3 per cent.
