First time buyers are doing it for themselves

In the past it was not uncommon for first time buyers (FTBs) to turn to their parents for assistance, however the latest findings from the Abbey First Time Buyer Index, show only 9.7% of possible first time buyers would expect this, compared to 23% six months ago. Furthermore only 7% expect their parents to be their mortgage guarantor. This figure was 12% the year before.

It would seem that more parents now are waiting until their children are actually moving into their first home to provide financial assistance in other ways. For those whose parents do help them financially, 55% believe that their parents never expect to be paid back, whilst 15% reckon they will never be able to afford to pay them back.

Although it has become increasingly difficult for a FTB to get their foot on the first rung of that property ladder, the ‘ideal’ dream property would be a quaint country cottage rather than some city apartment, town house or designer home.

Abbey’s head of mortgages, Nici Audhlam-Gardiner believes the reduction in the number of FTBs relying on parents is due to other options now available to them by the lenders including lower deposits up front, longer term lengths, higher income multiples-to name a few.

Speaking solely for Abbey, he reminds us that they have increased their standard income multiple, enabling them to lend up to five times income, subject to the applicant’s affordability of course.

He concludes that despite the traditional role of parents helping their offspring onto the property market declining, they still have their part to play with one in ten still needing their parents’ help to buy and over half looking for assistance on moving day.