Around 1 in 5 prospective first time buyers believe it's 'virtually impossible' to get a mortgage - compared to 1 in 10 parents.
That is according to a report by the Halifax bank, which shows that around a quarter of mums and dads have contributed towards a deposit for their child's first house. The bank are calling for more house building, as it's emerged around 28% of kids have moved back into their family home to save money, compared to 24% in 2012.
Looking at how parents have supported their children in buying their first home, it becomes apparent that direct parental contributions towards the costs of a mortgage have remained steady. While a contribution towards a deposit has remained the single largest type of contribution the numbers have remained steady. The only increase in the last four years has been those helping with the actual costs of moving house.
Craig McKinlay, Mortgage Director, Halifax, said:
"The Generation Rent Report shows a clear divide between parents and their children as regards optimism over getting on the housing ladder. In reality there are more mortgages available which require a 5% deposit and first-time buyer numbers are increasing.
But whether it is giving their children a cash lump sum or providing a roof over their heads while they save, it is clear the bank of mum and dad will have a role to play in helping their children get on the property ladder for the foreseeable future."
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