Bank of mum and dad ‘funding house purchases’

Many parents are looking to spend money they have saved helping their children get on the housing ladder.

A Lloyds TSB survey found that 70 per cent of parents with offspring aged over 18 thought now is a good time to get on the housing ladder.

The survey found that 23 per cent of mums and dads plan to use their savings to help with initial buyer costs, with the amount set aside averaging around £41,000.

Such a move comes as first-time buyer numbers rise, the lender noted, observing that in August there were 19,200 such purchases, compared with 8,600 in January.

Commercial director of mortgages at Lloyds TSB Stephen Noakes remarked: “Housing affordability is back to the level it was in 2003, so many parents with grown-up children want to help them take advantage by using their savings.”

This comes despite constructor Telford Homes claiming recently that the overall supply of mortgage finance did not improve during the six months to September 30th.

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