You are here: Home - First Time Buyers - News -

Eighth of first-time buyers plan to get joint mortgage with parents

Written by: Shekina Tuahene
The average first-time buyer puts down a deposit of 20 per cent, with many getting help from family
Eighth of first-time buyers plan to get joint mortgage with parents

An eighth of first-time buyers plan to get a joint mortgage with their parents to boost affordability, research has found.

A survey of 1,000 first-time buyers conducted by Teachers Building Society revealed 12 per cent of respondents had either applied or received an offer for a joint borrower sole proprietor (JBSP) product.

Some 54 per cent said they wanted financial help from their parents to buy a home, which is up from 27 per cent pre-Covid. The mutual said that this hinted at a potentially growing market for parent and child products.

In terms of how much family financial help was expected, 75 per cent said they expected around £13,000. A fifth said they would receive at least £20,000 while a further five per cent expected assistance in excess of £50,000.

Teachers BS research also revealed that 31 per cent of buyers intended to put down a deposit of more than five per cent, echoing data from the Office for National Statistics which showed the average first-time buyer put down a deposit of 20 per cent.

The survey also found a fifth of first-time buyers said the biggest hurdle to getting on the property ladder was finding a property they liked within their budget.

David Leek, head of product and marketing at Teachers Building Society, said: “In a red hot property market it is little surprise that parents who are financially able to support their children buy homes are offering their support.

“Whilst for some buyers saving for a deposit is a real challenge that a lump sum gift could help solve, for others accepting family help in the form of joining a mortgage could offer better hope of making a purchase, especially in highly priced and competitive areas.”

“JBSP mortgages are in effect a modern-day guarantor option, boosting affordability for the buyer without the implications of second home ownership for the supporting parents,” he added.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Sorry. No data so far.

Guide to borrowing past retirement age

As an older borrower, you may be concerned that a lender will not offer you a mortgage pas...

Mortgage market biased against homeowners

Buy-to-let property investors are unfairly favoured in the mortgage market, an independent...

Should buy-to-let investors ‘go Dutch’?

The Netherlands is revealed as Europe’s top buy-to-let property hotspot

Private sector tenants in poverty double in decade

The number of private rented sector tenants in poverty has doubled in the last decade from...

Large mortgage broker firm launches with fees of over 1%

An insurance firm has launched a mortgage advice service

Second steppers targeting detached properties

Those living in their first home are increasingly looking to reduce the steps to their lon...

Mortgage Calculators

+ +