Consumer: Mortgages ‘impossible’ for first-time buyers

One in five first time buyers believe it is 'impossible' to get a mortgage.
One in five first time buyers believe it is 'impossible' to get a mortgage.
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More than one in five 20 to 45-year-olds who do not currently own their own home believe it is “virtually impossible” for first-time buyers to get a mortgage, research suggests.

The Generation Rent report from Halifax found that despite the housing market recovery, 21 per cent of young prospective first-time buyers are of this opinion - compared with just 12 per cent of parents with adult children.

The need for young people to move back in with their parents appears to be a growing issue, the report found.

In 2015, 28 per cent of parents of adult children aged between 20 and 45 said their children had moved back into the family home, compared with 24 per cent in 2012.

However, there is also a growing sense of optimism compared to previous years, the report suggests.

Looking at how parents have supported their adult children in buying a home, 26 per cent said they have contributed towards their child’s deposit.

Meanwhile a further 21 per cent had helped with moving costs.

Last week, the Government said that nearly 100,000 people have now been helped onto or up the property ladder by its flagship Help to Buy schemes, which help people buy a home with a deposit as low as five per cent.

Craig McKinlay, mortgage director at 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 five per cent 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.”

More than 8,000 people aged between 20 and 45 as well as more than 1,000 parents took part in the research.