Over half of first-time buyers (57%) will be buying their first property with their partner, despite the fact that less than a quarter of them (22%) cite their reason for buying as being ableto live together.
The findings, from Alliance & Leicester Mortgages' 'First-Time Buyer' research, show that with property prices becoming more difficult to afford for first-time buyers, young people are increasingly finding practical ways to join the property ladder.
Less than a quarter (24%) of first-time buyers stated that they are able to foot the cost oftheir first purchase alone, so many are choosing to share the financial commitment by buying with their partner instead.The findings also show that when it comes to funding the deposit, an encouraging 42% of first-time buyers are relying on their savings, however this does leaveover half (58%) of first-time buyers seeking financial help from elsewhere.
Almost a quarter (24%) of first-time buyers will be opting for a 100% mortgage to cover their deposit whilst, almost a fifth (18%) will be asking their parents to help foot the bill.
Paul Cooper, head of mortgages at Alliance & Leicester, says: “First-time buyers are facingincreasing financial challenges as house prices continue to rise. Our latest findings show that they are being forced to find practical ways to work through these challenges, such as buying with their partner, relying on their parents to fund the deposit or looking at a 100% mortgage to finance their purchase.
“It is encouraging that people are clearly saving up for the deposit. In all cases first time buyers also need to account for all the costs of buying when looking at their budget or lookfor a mortgage deal that helps with these costs.”