Some interesting research by Abbey has shown that “British parents have collectively forked out more than £27 billion to help their children buy first homes” which averages out at £5,874. Also around 1 in 16 borrow money from parents with an average loan of just under £20,000.
With the demise of the higher Loan-To-Value mortgages, RBS is the latest lender to withdraw their 100% product, their must be alot of worried parents just waiting for the request for some money from Bank of Mum and Dad.
Undoubtedly these figures will increase and I expect to see more parents remortgaging to capital raise funds to assist. It will be interesting to see where average loan-to-values end up – could we see an end to even 95% loans ?
Lenders need to be more imaginative with regards to products helping the first-time buyer or we will see a sharp change from buying to renting.
Buy To Let landlords are licking their lips.