Thursday, June 6, 2013
Another banking crisis
Bank of Mum and Dad runs out of money as soaring numbers of young adults struggle to buy their first home
Millions of parents are â€˜unable or unwillingâ€™ to help their children, a crisis being made worse by banks demanding massive deposits. Many parents can afford to lend a small amount of money, but the record deposits required by banks or building societies to get the cheapest loans means that far more money is needed. The size of the average deposit put down by a first-time buyer has jumped, as the number of â€˜unassistedâ€™ first-time buyers has collapsed. In 2006, the average deposit put down by a first-time buyer was 10 per cent. Last year, it was 20 per cent. In London, where the average asking price is Â£510,000, this is equal to Â£102,000.