First time buyers rely on parents

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First time buyers rely on parents

Fri 19th Aug 2005

First Active has shown that 25 per cent of first time buyers will look to their parents for financial support when they feel ready to take their first step onto the elusive property ladder.

The research also showed that two-thirds of young people wouldn’t be able to purchase a property without help from their mom and dad.

Andrew Nicholson, market manager at First Active, told This is Money: “Buying a house is a major financial decision for most of us. Making it as affordable as possible is usually top of the list for most first-time buyers.”

A number of financial products are now available for those looking to purchase in this way, with family offset mortgages being the most popular choice.

The downside for parents is if they use their money to invest in the property, they won’t be able to earn any interest and thus may be reluctant to leave their savings lying dormant.

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