First Time Buyers Count on grandparents for deposit

Research from Santander has revealed that there has been an increase with one in ten first time buyers relying on grandparents for deposit.

There has been a big increase in FTB’s turning to family for help when getting on to the property ladder. 32 percent will now ask family for a loan to help with their deposit compared to just 13 percent only five years ago.

New home owners are now using 32 percent of their wages as a deposit compared to current homeowners who estimated their first deposit on a house would have been on average 20 percent of their salary.

Another factor revealed in the research was an imbalance when it came to gender and deposits for first time buyers, with only 14 percent of men who would use up to half their salary compared to women where 23 percent have said to have spent the same proportion.

Even though FTB’s are turning to family for help, it is expected that they will still need to spend at least 5 years saving up for the deposit which has increased from people purchasing their first home 5 years ago who on average would save for up to four years.

Miguel Sard, Managing Director of Mortgages, Santander UK said: “Despite having to use alternative income streams over and above their salary – such as relying on the Bank of Gran and Grandad – today’s first time buyers are demonstrating resilience and determination to achieve their home ownership goals. The purchase of a first property still remains high on the priority list for many people across the UK and it’s encouraging to see so many first time buyers feeling positive about the year ahead.”

You can read the full article published in Property Reporter 

Image Credit Ruffa Jane Reyes on Unsplash

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