A recent survey has found that one in four first-time buyers are struggling to obtain a mortgage deposit and so are getting financial help from their parents to get a foot on the property ladder.
Getting on the Property Ladder
According to Money, getting on the property ladder for the first time is becoming harder and more expensive than ever before.
Little wonder then that the bank of mum and dad is stepping in to help a quarter of first-time buyers to get the vital deposit they need to obtain a mortgage.
With house prices rising and mortgages becoming even harder to secure, it’s also not hard to see why more and more children are living with their parents to save up to buy a property. In fact, a survey suggests that up to 23% of young people live at home with their parents in order to save the cash they need for a deposit.
Obtaining a Mortgage
If saving up money is a challenge for first-time buyers, then so also is the ability to obtain a mortgage in the first place. Many people just can’t get the deal they want at the right price, with some would-be homeowners struggling to even understand what their options are. With this in mind, it’s essential that first-time buyers get the correct information they need to make an informed decision, such as using independent financial advisor Swindon services.
Buying a Property
Even though using independent financial advisor Swindon services can be useful for first-time buyers, other obstacles exist that make purchasing a property difficult. As well as a shortage of affordable and suitable homes for sale, many prospective homeowners struggle financially with aspects such as stamp duty, valuation fees, interest rates and other related fees.
It’s not all doom and gloom for first-time buyers. There are other options to explore that can give them a firm footing on the property ladder, especially if the bank of mum and dad has already run dry.
Parents could act as a guarantor for a mortgage, which means they use their property or savings as security to help their children.
Those would-be homeowners who are finding obtaining a deposit tricky might also wish to consider taking out a 100% mortgage, with parents acting as a guarantor.