Tuesday, July 13, 2010
Unless prices fall
First-time buyers who cannot raise a deposit from the "Bank of Mum and Dad" are being forced to rent or remain in their parents' home 10 years longer than middle class "first timers" one building society claims, as regulators propose to make lending rules even tighter. John Wriglesworth, a spokesman for Newcastle Building Society, said: "You cannot get a mortgage at competitive rates unless you have a deposit of 15 per cent or more these days and low interest rates are irrelevant if you cannot raise the required deposit. Now new research based on CML figures shows the average age of first-time buyers who can get help from their parents has fallen to 27, while first-time buyers who are not lucky enough to have rich parents have to wait until they are an average of 37 years old."