|    FM Home   |    FM News   |    FM Forum   |    FM Blog   |    17th of January 2018
|   Banking  |   Insurance  |   Property  |   Mortgages  |   Economy  |   Investments  |   Credit Cards  |   Debt  |   Loans  |   Pensions  |   Companies  |  

Mortgage News feed Mortgage News

All Financial News feed All Financial News




First-time buyers rely on parental support

Bookmark and Share

by Gill Montia
First-time buyers rely on parental support

Price comparison website, Moneysupermarket.com, has reported that over 50% of the first-time buyers that approach mortgage lenders using its site are receiving financial support from parents.

Those attempting to get a foot on the property ladder have been particularly hard hit by borrowers raising deposit requirements and according to research from Moneysupermarket, parents are providing help with initial costs, such as deposits, stamp duty and legal fees.

In some cases they are adding their names to the mortgage.

Latest figures from the Council of Mortgage Lenders show that in July, loans to first-time buyers declined to 17,300, down 5% on June and 48% on July 2007.

The average first-time buyer deposit rose from 13% in June, to 15% in July and according to Louise Cuming, head of mortgages at the website, first-time buyers are therefore increasingly reliant on family help.

However, the rise in the size of the average deposit has meant that the average first-time buyer loan-to-value ratio fell to 3.24 times income in July, down from 3.33 times income in June and reverting to the level recorded in July 2006

Discuss this in the Finance Markets forums

Story link: First-time buyers rely on parental support



News posted: September 16, 2008

Financial Services:





Related financial stories to: First-time buyers rely on parental support:
Previous: «
Next: »

Visited 1495 times, 2 so far today

No Comments

No comments yet.

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.

Tags: ,