An overwhelming majority (84%) of first time buyers rely on financial support from their parents, according to Clydesdale and Yorkshire Banks.
This figure has more than doubled since 2005, when just 38%* of buyers relied on the ‘Bank of Mum and Dad’ to buy their first property.
And it is not just parental support that first time buyers are relying on. Just under half (47%) of properties bought by first time buyers have been purchased with a joint income**, whether that be as a couple or with a friend.
Steve Reid, Retail Director for Clydesdale Bank, said: “It is becoming increasingly commonplace for first time buyers to require financial help from their parents when buying their first home.
“At Clydesdale and Yorkshire Banks, we recognise that first time buyers are vital to keeping the property market moving and are committed to helping them with our range of competitive products.”
The Bank is one of only a handful of lenders still offering a 95% mortgage, which is fixed for three years at an initial rate of 6.99% before moving to the standard variable rate after this period. There is an arrangement fee of £599 and the bank will pay for one home valuation***.
The Bank also offers two 90% LTV mortgages fixed for three years***. With 90% LTV the rate is fixed at 5.99% with an arrangement fee of £599 or fixed at 6.29% with no fee.
Steve Reid added: “In addition to offering up to 95% loan-to-value mortgages, we recently launched our Regular Home Saver product*** which helps first time buyers save towards a deposit for their first home. With almost half of first time buyers purchasing a property with a joint income, this should help to make the process simpler for both parties.”
Customers can obtain more information about Regular Home Saver and First Time Buyer Mortgages offered by Yorkshire Banks by contacting 0800 111 4147 (opening hours 9am – 5pm Mon-Fri) Clydesdale Bank : 0800 678 1230 (Monday to Friday 8am to 8pm) or visiting www.ybonline.co.uk / www.cbonline.co.uk
*Source – Council of Mortgage Lenders
** Source – Council of Mortgage Lenders (January 2011)
*** Terms and conditions apply