Turning to the bank of ‘Mum and Dad’
Our research for Aldermore Bank has found that one in four first-time buyers are now turning to the Banks of Mum and Dad to support their dream. This is unsurprising as the research also reveal that for 26% of first-time buyers, raising a deposit remains the biggest obstacle to overcome when trying to buy their first home.
However, it is not as easy as handing over a chunk of money. The research revealed that for those planning on receiving support, 54% of parents will assist to fund their child by using their cash savings followed by a quarter who plan on releasing equity in their property. A fifth of parents are prepared to move or downsize to help their kids get on the property ladder.
Aside from looking for financial support from their family, more than one in five (23%) aspiring first time buyers are currently living with their parents to help save for a deposit. In 2017, prospective first-time buyers living at home were costing their parents an average of £4,996 a year for food and drink, petrol and utility bills.
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