Thursday, October 19, 2006

Quarter of FTBs can’t get mortgage without parental help

One in four first-time buyers rely on parents to buy a home

Spiralling living costs has led to young first-time buyers relying on "the bank of mum and dad" to get on the housing ladder, according to a report. Research from Skipton Building Society revealed that one in four 20-35 year olds are counting on parents to contribute to their deposit. Jennifer Holloway at Skipton Building Society, said: "Faced with industry figures which put the average cost of a house in the UK at nearly £200,000 climbing onto the property ladder must seem as daunting as climbing Everest.It is little wonder first-time buyers are looking to their parents for financial help. She added: "The reality is that, if you want to be a homeowner, you have to make the most of the money you have. Our advice for young people is to start saving as early as possible - even if it means forgoing the odd night out or new pair of shoes."

Posted by little professor @ 12:05 PM (533 views)
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9 thoughts on “Quarter of FTBs can’t get mortgage without parental help

  • little professor says:

    Yeah, if I forgo the odd pair of shoes I’ll soon have enough to buy that £200,000 house I’ve been lusting after. It’s so simple when you know how!!!

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  • Yes, makes perfect sense, reducing public spending so that they can save it, not for their pensions but to buy an extremely overpriced house.

    what happens to the economy when public spending goes down? – oh look! it has done. http://news.bbc.co.uk/1/hi/business/6065490.stm

    I think it will come back up over christmas. but people looking after the pennies is a sign that things are tight.

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  • Let’s see… me and the Mrs buy 2 pairs each a year @ £40 = £160 per year and go out once a fortnight costing £50 = £1300 per year (generous). We give up the ‘odd one’ = half say, saving £715 per year. So to save that 10% deposit we’ll be there in 28 years. Why was I worrying!!

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  • its only 400 pairs (at £50) to save up the 10% deposit….

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  • george monsoon says:

    And there was me thinking that if I wait long enough the house prices will fall, thus saving me thousands in real terms.

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  • Millard said:
    >>its only 400 pairs (at £50) to save up the 10% deposit….

    My daughter will be pleased when I tell her that if she bought a hundred pairs of shoes a year instead of the normal 500 she would have saved enough for a 10% deposit.

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  • Good to see the cheats doing the right thing.

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  • Gifts from Mum and Dad are just an advance on inheritance. A good way of avoiding inheritance tax, so long as they survive seven years, but make sure that you are not relying on the same money coming a second time to pay off your interest-only mortgage!

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  • A significant number of women probably do spend as much on shoes in a few years as would be a deposit for a flat. And george monsoon, you will not save a few thousand dollars by waiting for house prices to come down how do you figure that one out? If house prices rise it will be because of high interest rates and your payments will be more so it doesn’t really work quite as simply as that.

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