First time buyers need help

The average age of first time buyers who do not receive financial help from their parents is now at an all time high. The average age has risen to 37 from 33 due to less first time buyers being lent money by relatives. Couple this with the financial industry making first time buyers pay more of a deposit, in order to get on the property ladder, has pushed up the average age for first time buyer who do not receive financial help from their parents by 4 years. According to the Council of Mortgage Lenders, up to 80 per cent of first-time buyers are seeking help from their parents to raise a deposit on a property.

In its most recent monthly report, the Council of Mortgage Lenders said: “Up until late 2007 – around the time the credit crunch began – the average age of first-time buyers excluding those getting help, was fairly stable at around 33. Lending criteria have been scaled back to such an extent in the credit crunch that it has become exceptionally difficult for young people to get a mortgage without external help for a deposit.”

The figures do show that the overall age for first time buyers has changed little since 2005 and is still around 31. The Council of Mortgage Lenders research suggests that this has only been maintained because more people are turning to relatives for financial help towards deposits worth around 25 per cent of their property’s value.

Help is on the way with signs that the financial institutions are about to relax their lending criteria

The latest figure released last month from the Council of Mortgage Lenders said that 8 in 10 first-time buyers under 30 had received parental support this is the highest proportion on record. When this figure was last reported in 2007 the Council of Mortgage Lenders said around 38 per cent relied on their relatives for help.

Help is on the way with signs that the financial institutions are about to relax their lending criteria could mean that thousands of first time buyers may not have to wait too long for their chance to get onto the property ladder.

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This entry was posted on Wednesday, August 12th, 2009 at 11:30 pm and is filed under Buying Property in Shropshire. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.