Homeowners aged between 25 and 40 who receive help with their deposit from parents feel guilty about it, according to a recent survey.
More than 10% of homebuyers in this age bracket assume that they will be given over £40,000 by family to help with the purchase of their first home. However, the survey also revealed that 66% of homebuyers in this age range who were expecting some cash support from the ‘bank of mum and dad’ also experienced guilt.
The latest first time buyers report produced by the Yorkshire Building Society revealed that 31% were expecting to receive financial help with their deposit, which was similar to last year’s 29%. The average price for a starter home in England is £198,325, which means that a 10% deposit will be around £20,000. A spokesperson for the building society, Simon Broadley, said:
“There are many parts of the country where average house prices dwarf earnings and our survey shows the financial and moral dilemmas facing first time buyers are acute.”
Although the survey indicates that young adults do feel guilty about receiving help from parents and family, another survey revealed that relatives are willing to offer financial support to help their kin onto the property ladder, with almost 60% saying that they have written off some or all of the money loaned.
First time buyers need to find the best mortgage deal they can, suited to their requirements and situation, which is where a CeMAP qualified mortgage advisor can help.