The number of first time buyers relying on the Bank of Mum and Dad for support has dropped significantly according to new research released today.
Clydesdale and Yorkshire Banksí Annual First Time Buyers Survey has revealed that less than half (46%) of the nationís first time buyers needed help in saving for their deposit in 2014. This compares with 63% in 2013 and more than three quarters (78%) in 2012.
Steve Fletcher, Head of Clydesdale and Yorkshire Banks Retail Network, said: ìIt has been very encouraging to see the recovery of the property market with lending to first time buyers at the highest level for seven years*.
ìIt is also positive that the number of first time buyers relying on the Bank of Mum and Dad to get on the property ladder has decreased significantly. This reflects the increased availability of first time buyer mortgages with a low deposit as well as growing economic confidence particularly among housebuyers.
ìClydesdale and Yorkshire Banks were one of only a handful of lenders which continued to provide a range of mortgages for first time buyers with a 5% deposit during the economic downturn and the Banks continue to support this market.î
The research also underlined some stark regional first time buyer differences with just over a quarter (27%) in Yorkshire receiving support from their parents compared to 57% in the South West.
Regional breakdown re help from Bank of Mum and Dad in saving deposit for first home:
Region % received help
South West 57%
North West 55%
South East 51%
North East 50%
In addition to their support through low deposit mortgages, Clydesdale and Yorkshire Banks are currently offering £250 cash back on three year fixed first time buyer mortgages. The rates are 3.59% on 90% LTV and 4.89% on 95% LTV. The mortgages also benefit from no arrangement fee, no funds transfer fee and customers receive a free standard home valuation. The cashback offer is available for those borrowing up to £999,999.
Save money on your mortgage by comparing interest rates with MoneyExpert.com.