You are here: Home - Mortgages - First Time Buyer - News -

First time buyers receive half of deposit from parents

Written by:
The average first time buyer receives roughly half of their house deposit from their parents, a study has revealed.
First time buyers receive half of deposit from parents

And more than two thirds of mums and dads who stump up the cash to help their children onto the property ladder offer it as a gift meaning they get nothing back in return, the report from Santander Mortgages found.

However, almost three in 10 first time buyers receive the money as the equivalent of an interest-free loan while only three per cent of parents contribute towards their children’s deposit as an investment.

Women are more likely to be gifted the money by their parents than men and for those yet to buy their first home, the average amount they look to receive from the ‘Bank of Mum and Dad’ is £17,900.

With the average first-time buyer deposit coming in at just under £25,000 this represents a 71.6 per cent subsidy. Some 22 per cent estimate their parents will contribute £20,000 or more.

A third (34 per cent) of those who have children yet to buy a home say they will contribute money towards a deposit in order to help them on to the property ladder.

Miguel Sard, head of Santander Mortgages, said: “Raising a deposit can be a huge challenge and our research shows that many rely on financial help from their parents in order to get a foot onto the property ladder. Buying your first home can be a daunting but there are ways to make it easier and support is available to help first time buyers with upfront costs.”

Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get in the second lockdown?

News and updates on everything to do with coronavirus and your personal finances.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Q&A: What are retail and mini bonds?

John Lewis, Hotel Chocolat, Tesco and Ladbrokes have made headlines by issuing retail or 'mini bonds'. But what are they...