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.ADNFCR-1143-ID-18567024-ADNFCR


News Home




 Print   Send to a Friend   Discuss in Forum   RSS Feed



Share this article:

  Digg it    Del.icio.us    Reddit    Newsvine    Nowpublic   






Search News Archive: