FTBs still drawing on Bank of Mum and Dad: Aldermore

Prospective first-time buyers who plan to use the bank of mum and dad for funds has remained the same, at 23 per cent, since 2017, according to Aldermore.

Data collected by the firm shows that of those parents willing and able to help their children raise funds for a deposit, 54 per cent will draw on their cash savings.

Meanwhile, 24 per cent plan to use money generated using an equity release product, 19 per cent through downsizing, 17 per cent from remortgaging, 6 per cent by cash taken from their parents’ pension, and 4 per cent through the sale of their parents’ second home.

Aldermore director of mortgages Damian Thompson comments: “Young people have had a stark fall in home ownership the past two decades, and with a challenging environment of high house prices, shortage of suitable homes, and weak wage growth this trend will likely not change any time soon.

“A typical new buyer now needs 18 years to save for a deposit, a striking rise from three years in the mid-90s, meaning the need for the bank of mum and dad to provide support has increasingly become a necessity, rather than just a helping hand.”

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