More grandparents help first time buyers onto property ladder

March 15, 2017 by Brendan O'Neill

Borrowers

According to research by Santander, there are now more people asking grandparents for help with buying their first home than ever before.

Around 10% of first time buyers approach gran and grandad for cash for their deposit. The research indicates that the number of people relying on grandparents for financial help when buying a house, has increased fourfold during the last five years.

There are far more people asking families for support when it comes to buying a house now. Around 32% said that they will ask their family for financial help with a deposit, while just 13% of existing home owners had received help from their family.

This may be happening more now as the rising house prices mean that people have to save far more for a deposit on a home. The study also shows that 32% of first time buyers believe that their deposit will equate to 32% of their salary, while 20% believe that it could be more than half their income. Existing home owners stated that their deposits had been around 20% of their income, with only one person in 20 putting down a deposit which was more than half their income.

Large numbers of first time buyers state that it will take them five years to save a deposit, while five years ago, it would only take four years of saving for a deposit. However, there are reasonable deals available for people with a smaller deposit, and mortgage advisers can advise buyers about this, thanks to taking CeMAP training courses.