At the first-time buyer summit held by the Conservative party today, Alliance & Leicester says first-time buyers are the lifeblood of the mortgage market.
Stephen Leonard, director of mortgages at Alliance & Leicester, says: As house prices continue to go up and with the increase of existing homeowners buying second homes, more and more young people who want to get on the housing ladder for the first time are finding it extremely difficult to find affordable housing.
Increasingly, they are finding other means to help them face these difficulties.
“Recent research conducted by A&L shows that parents intend to help their children onto the property ladder by giving them an average of 17,677* more than enough for a deposit on their first home.
Furthermore, almost half (46%) of those parents planning to help out believe buying a roof over their childrens heads is still part of their parental duties*.
Lenders are playing their part to help the first time buyers cause.
A&L lends money on an affordability basis which enables buyers to borrow money according to their individual financial circumstances and is not based on rigid income multiples.
Since moving to this model last year, the number of first time buyers turning to A&L has increased.