Mortgage lending continues to be a problem and many first-time buyers are relying on their parents for financial support when purchasing a property, one expert has suggested.
Paul Samter, economist at the Council of Mortgage Lenders (CML), remarked that borrowers are still being affected by “very low levels” of available financing and that many people looking to get on the housing ladder are turning to their family.
He said: “The bank of mum and dad remains an apparently important source of help for young first-time buyers. Some mortgage products specifically reflect this fact.”
In the future, home loans aimed at individuals in these circumstances may even become more prominent, Mr Samter added.
According to research by the CML, approximately four-fifths of those under 30 looking to buy their first house are probably receiving financial aid from their parents.
In recent news, the chairman of the Financial Services Consumer Panel Adam Phillips stated that seeking financial advice on a mortgage should not be a last resort.
By Francis Finch