First Time Buyers Seek Help from Parents for Housing

A recent survey done by Halifax showed that it was very difficult for many first time buyers for housing without financial help from their parents.

About 35 percent of the parents with children aged 18 to 24 are helping them to acquire their own homes by providing substantial financial assistance.

According to reports from the Council of Mortgage Lenders (CML), more than eighty percent of the children acquire their first home with the financial assistance from the Bank of Mum and Dad.

In the year 2005 only about 38 percent of the children received financial support for their first home which showed that the figure has almost doubled now.

The CML noted that the number of loans approved for the first time buyers decreased from 19,300 in July to 18,300 in August while there were 35,000 loans approved at the beginning of the credit crisis.

About 79 percent of the parents responded to Halifax told that it was difficult to buy the first home today than earlier. The tight lending criteria also have caused many first time buyers away from housing loans.

Mr. Drew Wotherspoon of John Charcol said that huge changes to lending criteria had undoubtfully kept many first time buyers out of the market.

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Within the last 12 months, have you (or 2nd applicant) missed loan/mortgage repayments, declared bankruptcy or had a CCJ or IVA? If yes - we can still help.

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