NEW research shows that almost two thirds of first time buyers receive help in saving for a deposit – with the Bank of Mum and Dad playing an important role in the process.
Figures from the Annual First Time Buyers Research* study highlighted that 63 per cent of first time buyers benefit from financial support when taking their initial steps onto the housing ladder.
The Bank of Mum and Dad was key for half (50 per cent) of respondents, with 28 per cent receiving a loan and 22 per cent being given a gift of a deposit from other family members.
A regional breakdown shows that FTBs in the Midlands region receive the most help in saving for a deposit (67 per cent). Those in the East are at the bottom of the table at 52 per cent.
However, there continues to be great news for first time buyers looking to buy a brand new home with Linden Homes.
Thanks to the Help to Buy Government-backed scheme, which continues to prove popular with purchasers across the region, more and more first time buyers are saving cash when stepping onto the property ladder.
Here’s how Help to Buy works:
- It is available on new build homes only.
- Purchasers need a minimum five per cent deposit - making this a more achievable target for first time buyers.
- The government will lend you up to 20 per cent of the value of your property through an equity loan, which can be repaid at any time or on the sale of your home.
- Buyers will only need to secure up to a 75 per cent mortgage from a bank or building society.
- The maximum home purchase is £600,000
Linden Homes (Midlands) sales director Chris Roads said: “Help to Buy has really helped to curb the cost of moving for many people, and first time buyers in particular.
“Since its launch in April this year, we have been inundated with reservations from eligible customers using this scheme – many of whom have moved into and are enjoying the benefits of the incentive and of course, a brand new home.
“The fact remains, as the research shows, that many still receive help in saving for the deposit they need – but through Help to Buy and other incentives, potential buyers can come and talk to us about how we can help ease the financial pressures of buying a new home.”
The study also shows that a quarter (25 per cent) of first time buyers took between one and two years to save for a deposit, while for almost one in five (18 per cent) it took between four and five years.
Linden Homes is currently building in Bedfordshire, Cambridgeshire, Lincolnshire, Leicestershire, Northamptonshire and Nottinghamshire.
* Research by Clydesdale and Yorkshire Banks November 2013
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For further press information please contact Cetti Long at Media Matters on 01733 371363 or email cetti@mediamatters-pr.co.uk
