Parents Pay Half of First Time Buy Deposits

Parents Pay Half of First Time Buy Deposits.

Research by Santander has found that the average deposit required to by a property for a first time buyer is now around £25,000.

On average, the “Bank of Mum and Dad” is contributing around £18,000 to each first time buyer purchase with one in five sets of parents helping with a £20,000+ gift.

Given high house prices and the desire to get children on the property ladder, already 1 in 3 parents say that they will help their children although the reality is that actually a greater proportion of parents are helping their children.

Comment

To secure lower interest rates, first time buyers need larger deposits. Lenders are also requiring larger deposits and many of us do not wish to be involved with the Government’s Help to Buy Scheme as it is the Government that then owns a share of your property and future equity growth rather than you.