Research conducted by the finance broker Tembo has revealed that close to half of all first-time homebuyers are dependent on family financial help to afford a home.
This research found that 48% of first-time homebuyers feel that they will need to get financial support from their families for a property purchase to be within their grasp. The vast majority of them – 92% in total – indicated that this support would be welcome if it enabled them to get onto the property ladder. It was younger buyers aged between 18 and 24 who were most comfortable with accepting parental financial help.
On the other hand, those between 35 and 44 years of age who took part in the survey indicated that they would only feel comfortable with this if the money was inherited or provided in secret.
The research also shows that the issue can be a highly emotive one for many, with 70% of people trying to buy their first home stating that they had feelings of financial envy towards older people. In total, 83% of those who already own a home told Tembo that they thought the situation was worse now for younger people.
Richard Dana, the co-founder of Tembo told Mortgage Finance Gazette:
“Our latest data shows the depth of the financial challenges FTBs continue to face in getting onto the property ladder compared to the generations before them.”
There are options that mortgage advisors who have done CeMAP training courses can put to first-time buyers, such as loans from more specialist lenders.