First-time buyers turning to family for help

A number of first-time buyers have to turn to their family for help with deposits in order to buy a new home, experts have claimed.

According to Council of Mortgage Lenders (CML), the withdrawal of 100 per cent mortgages has forced increasing numbers of first-timers to turn to their loved ones for help.

Bernard Clarke, a spokesperson for the organisation, revealed that family was only a viable option for some, pricing others out of the housing market altogether.

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

"That's great for those who are in the fortunate position of having relatives who are able to and willing to do that – but not everybody's in that position," Mr Clarke added.

Recent statistics, produced by the CML, have shown that first-time buyers represented just 37 per cent of all home purchasers in February 2008.

Mortgages News posted on 24/04/2008 15:46:09