Bank of Mum and Dad
Would you like to hazard a guess at the average amount parents have given their children, to help them buy a property?
It’s a whopping £32,440, according to Zoopla.
And this isn’t a rare occurrence – Zoopla’s research indicates that nearly two thirds of parents have helped their children get onto the property ladder.
But the generosity doesn’t stop there. Between 10 and 15% of parents have given their children money towards their mortgage or rent, or for bills, decorating or repairs. Parents help their children out because they can afford it, and also because they don’t think their children would have been able to buy a property without their help.
But what can you do if your parents just can’t afford to help you out?
Support is available from the government for first time buyers, such as:
- The Help to Buy: Equity Loan scheme which provides the opportunity to buy a home with a 5% deposit
- Shared Ownership which allows the buyer to purchase part of the property and pay rent on the remaining part
- First Homes: new build homes are offered at a discount of between 20 and 50% to local first-time buyers and key workers
- The Lifetime ISA initiative allows first-time buyers to save up to £4,000 a year. The government will add on a 25% bonus
- A 95% mortgage guarantee scheme where the government ‘guarantees’ mortgages for buyers with 5% deposits
Louise Lewis, in-house mortgage consultant at smarthomes commented, “…many of our customers are lucky to have benefitted from donations or loans from their families, but for those who don’t have access to this financial support we can advise on any financial incentives and assistance that may be available to them. We work closely with our clients to understand their financial circumstances and needs in order that we can offer the best financial advice and mortgage solutions for the purchase of their new home. “
For more advice on buying your first home just call Louise Lewis at smarthomes on 0121 744 4144. Have a look at our property for sale in Solihull and the local area: