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One in four parents can’t afford their own home

Alliance & Leicester has revealed that nearly a quarter of parents in the UK cannot afford to buy their own property, and rely on renting or living with their children’s grandparents.

Out of these parents, only 3% are currently seeking their own home, while over half are not even attempting to look for property thanks to spiralling costs for first-time buyers.

A&L also commissioned further investigation by the Centre For Future Studies to emphasise the problems faced by parents in the UK. With divorce rates set to double by 2021, the increased single-parent families will find it even harder to afford their own property on a single income; by 2014 the CFS predicts 62% of all parents in the UK will not be able to get onto the property ladder.

Stephen Leonard, director of mortgages at A&L, says: “We are currently seeing a shift in our society which will affect the housing market over the next twenty years or so. The decrease in the number of nuclear families as a result of divorce could mean an increase in the number of rented households with children as our research indicates.

“Although parental renters might be put off looking into buying a home because of the expense they shouldn’t think that it is always out of their reach. More and more lenders are using affordability based lending based on their personal financial circumstances, which is a more realistic and accurate way to calculate what they can borrow.”


Amber launches products through key account packagers

Amber Homeloans Limited has launched a range of semi-exclusive adverse products only available through Amber’s key account packagers.This new three-month LIBOR-linked range spans the adverse market from Feather through to super heavy adverse, with 18 and 30 month fixed rate options.Highlights include the heavy adverse products up to 85% LTV (full status or self certification) […]

BM dominates Hamptons Awards short list

Hamptons Mortgages unveiled its awards short list last week, with BM Solutions making the grade in eight out of 11 categories. The Hamptons Awards are one of London’s most prestigious lender award ceremonies. This year the event takes place on November 23 at the trendy Vinopolis wine museum on London’s South Bank. Jonathan Cornell, Mortgage […]

Forget trying to talk sense into MPs

Last week I was invited to speak about Home Information Packs in the House of Commons. I accepted the invitation but I had doubts about how worthwhile the exercise would be. These doubts were well founded.

Amber products to be offered through mutuals

Mutual One has now launched its Mutual One Mortgage Partnership initiative, allowing societies to offer Amber’s product range through their branches, complementing their own mortgage product range.The mutual societies have access to Amber’s full range of products; from near prime to super heavy adverse, and from buy-to-let to self-certification.The first mutual society to offer Amber’s […]

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Johnson Fleming set to host webinar on auditing auto-enrolment schemes

With 23 auto-enrolment compliance notices issued by the Pensions Regulator, and an evolving legislative landscape meaning previously compliant schemes may now be in breach of regulation, now is the time to think about auditing your auto-enrolment scheme. Johnson Fleming is hosting a webinar on 9 October at 11:00 on how to audit your scheme to ensure compliance, avoid breaches and fines and overcome data issues.


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