First-time buyers turn to family for help

Posted 2008-04-27

More first-time buyers are turning to their families for financial help, an industry expert has claimed.

Following the withdrawal of all 100 per cent mortgages from the market, the Council of Mortgage Lenders (CML) has claimed that an increasing number of first-time buyers are looking for financial assistance from their families.

Bernard Clarke, a spokesman for the CML, claims that parents who bought their properties in the 1970s and 1980s have seen significant equity growth in their own properties and are therefore able to help their offspring with their deposits.

"Family is increasing the main option for first-time buyers. It is another option, but its only open to those who are able to call upon that help, and whose relatives are able to provide it," he said.

Recent CML statistics showed that, in February, first-timers made up 37 per cent of the market.

Abbey was the last mortgage provider to withdraw its 100 per cent mortgage deal, when it did so earlier this month.

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