Many feel the government has not done enough to support first-time buyers
One in every two current homeowners with a mortgage had support in getting onto the property ladder, according to the latest research by The Mortgage Lender (TML).
More than one in 10, or 11%, said they had help from the Bank of Mum and Dad, 6% mentioned they used a Help to Buy individual savings account, and 5% revealed they used a lifetime individual savings account.
Around 6% of the respondents said they bought their home using shared ownership, while 5% claimed they benefited from Rent to Buy schemes.
The survey of more than 400 homeowners with a mortgage also showed that 42% felt that the government has not done enough historically to support first-time buyers onto the ladder.
“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,” said Chris Kirby (pictured), head of key accounts and specialist distribution at The Mortgage Lender.
“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.”
Kirby added that the lack of information on government schemes had led to 26% of those surveyed feeling overwhelmed with what first-time buyer scheme they should use, which made it even more difficult to ascertain 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, while 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.”
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