'˜Bank of Mum and Dad' still being used by first time buyers
The Bank of Mum and Dad is still playing an important role in the property market according to new research from Clydesdale and Yorkshire Banks.
The annual First Time Buyers Survey from the Banks has revealed that almost half (49 per cent) of first time buyers still need financial help to take their first step on the property ladder.
Eighteen per cent receive a loan from their family while 18 per cent were gifted money by their parents.
The findings highlighted that this is slightly higher than those seeking financial support in 2015 – but considerably less than in 2012 and 2013.
The figures are: 2016, 49 per cent; 2015, 48 per cent; 2014, 46 per cent; 2013, 63 per cent; and 2012, 78 per cent.
The Welsh are receiving the most support from the Bank of Mum and Dad with 64 per cent relying on them for money, followed by 57 per cent in London and 56 per cent in Yorkshire.
In contrast only 38 per cent in the South East and 43 per cent in Scotland turned to their parents when buying their first property .
The new research also found that almost two thirds (66 per cent) of aspiring homeowners rent a property before they pick up the keys to their very first home while a quarter opt to stay at home with their parents or a family member to help them save for a deposit.
Taking the step from renting to owning was motivated by finances for 31 per cent, while a further 31 per cent saw it as an investment for the future.
It worked out cheaper than renting for 14 per cent
Helen Page, Propositions and Marketing Director at Clydesdale and Yorkshire Banks, said: “Buying a first home is one of life’s key milestones and at Clydesdale and Yorkshire Banks we understand the financial pressures that potential homeowners can face, from saving the necessary deposit, to buying furniture as well as budgeting for monthly bills and expenses.
“That’s why we offer First Time Buyers £250 cashback, a free standard valuation, no arrangement fee and home insurance discounts on both our 90 per cent and 95 per cent fixed rate mortgages,” she added.