You are here: Home - News -

Half of homeowners need support to get onto housing ladder

  • 07/08/2023
  • 0
Half of homeowners need support to get onto housing ladder
Around half of homeowners with a mortgage had support, either from the Bank of Mum and Dad, ISA or government scheme, to get on the property ladder.

According to research from The Mortgage Lender, which surveyed 2,005 adults, around 11 per cent said that they had the help of the Bank of Mum and Dad to buy their first property.

Approximately six per cent respectively said that they had used Rent to Buy, Help to ISA, First Homes scheme, Right to Buy in England to get on the property ladder shared ownership and guarantor mortgages.

Another five per cent either used a lifetime individual savings account or deals from developers and four per cent said they used Help to Build or a Help to Buy Equity Loan.

The research added that around 42 per cent of this group felt that the government had not done enough to historically to support first-time buyers onto the ladder.

Chris Kirby, head of key accounts and specialist distribution at The Mortgage Lender, said: “Affordability has proven to be one of the most pressing issues regarding the property market, and our latest research demonstrates the impact of that on the journey to homeownership.

“With rents continuing to rise in most areas of the UK, many prospective buyers will likely feel trapped between spending more renting and high buying costs, which can lead to significant delays in being able to purchase a property, and/or having to make compromises on what or where they buy.”

He added that a lack of information on government schemes led to over a quarter of those surveyed feeling overwhelmed as to which first-time buyer scheme to use, and it made it more difficult to find a path onto the property ladder.

“Those looking to get onto the housing ladder should take time to research what options are available to them, whilst also seeking the advice and guidance of a mortgage broker, who will be able to help clarify what support there may be, but also how best to achieve the level of borrowing they’re looking for sooner rather than later depending on their situation,” Kirby noted.

There are 0 Comment(s)

You may also be interested in