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Inter-generational mortgage market grows 40 per cent in two years

by: Shekina Tuahene
  • 30/07/2019
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Inter-generational mortgage market grows 40 per cent in two years
There are 40 per cent more security deposit mortgages available on the market now than two years ago.


The inter-generational mortgage market has grown significantly in recent years and now offers some of the most competitive interest rates, according to research by Defaqto. 

There are 28 inter-generational mortgage products available on the market today; 13 providers now offer some form of security deposit mortgage, compared to eight providers offering 20 products two years ago.  

Traditionally guarantor mortgages have been the most popular, however security deposit mortgages are becoming a preferred option for some. 

Katie Brain, insight analyst at Defaqto, said: “With property prices so high, some young people are having to turn to family in order to get their first home. Not many people have the cash to put down a deposit for a relative’s home and security deposit mortgages can be a good alternative for them. 

“It’s important that borrowers read and compare the terms and conditions of these products because they do vary.” 

This follows data released from the AmTrust Mortgage Loan to Value Tracker, which showed that the number of high LTV deals for first-time buyers had dropped. The firm called on lenders to put a stop to this for fear of the mortgage market “shifting towards ‘Bank of Mum & Dad’-style options for first-time buyers”.


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