According to new research from Post Office Money, 60% of parents are able to offer financial assistance to children wanting to buy their own home. However, 41% of parents are not able to provide financial help, but help in many other ways.
The study reveals that some parents let their children live at home rent free while they save for a deposit, while 25% charge their offspring a lower rate, and free childcare is a bonus from 15% of parents. The research was compiled using information from the Office for National Statistics and Opinium Research. The study discovered that parents of first time buyers aged 18 to 24 can afford to provide a third of their financial wealth, which averages at £18,396 towards a deposit.
Just over 80% of parents are willing to help their offspring out financially if they are able to do so. However, for many parents, financial help isn’t possible, with just 5% saying they can offer £50,000 or greater. Not being able to provide financial help for children causes feelings of guilt in 7% of parents. Of the parents who have supported children financially, 40% offered the money as a loan, while 59% gave the cash as a gift.
As it is becoming increasingly difficult for first time buyers to save for a sufficient deposit, it is crucial for them to find a mortgage with affordable rates. Mortgage advisors gain this knowledge when taking CeMAP courses, knowing all the types of mortgage, the interest payable and the criteria of lenders.