New buyers borrow from family
Thu 24th Apr, 17:09:19 BST
First-time buyers who are struggling to make it onto the property ladder are increasingly turning to their parents for help.
That is according to the Council of Mortgage Lenders (CML), which said that the global credit crunch has caused many new buyers to seek different options.
As a result of the crunch, mortgage lenders are no longer offering 100 per cent deals, meaning borrowers need to raise a deposit.
Many first-time buyers are choosing to borrow from family members as it is cheaper than taking out a loan and many are happy to help.
"[Family is] increasingly the main option for first-time buyers. It is another option," said CML spokesman Bernard Clarke.
"We have seen [parents] who have enjoyed equity growth in their own property over a period, being able to draw on that to help relatives who are first-time buyers with a deposit," he added.
That is according to the Council of Mortgage Lenders (CML), which said that the global credit crunch has caused many new buyers to seek different options.
As a result of the crunch, mortgage lenders are no longer offering 100 per cent deals, meaning borrowers need to raise a deposit.
Many first-time buyers are choosing to borrow from family members as it is cheaper than taking out a loan and many are happy to help.
"[Family is] increasingly the main option for first-time buyers. It is another option," said CML spokesman Bernard Clarke.
"We have seen [parents] who have enjoyed equity growth in their own property over a period, being able to draw on that to help relatives who are first-time buyers with a deposit," he added.
News Home
Print Send to a Friend Discuss in Forum RSS Feed
Share this article:
Digg it Del.icio.us Reddit Newsvine Nowpublic