Almost two thirds of first time buyers receive help in saving a deposit

The Bank of Mum and Dad still has an important role to play for First Time Buyers, with almost two thirds receiving help in saving a deposit for their first property, according to research from Clydesdale and Yorkshire Banks.

The Annual First Time Buyers Research from the Banks highlighted that 63% benefit from financial support when taking their first step onto the property ladder. The Bank of Mum and Dad was key for 50% of respondents with 28% receiving a loan and 22% benefitting from the gift of a deposit from their parents or another family member.
 
Potential homeowners in the Midlands are benefiting from the highest levels of support with 67% receiving help, closely followed by London and the South East. The lowest levels of help are in the East, however still more than half (52%) have had support in saving a deposit.
 
Regional Breakdown of receiving help in saving a deposit:

Region - % receiving help

Midlands 67%
London 66%
South East 66%
Wales 65%
Yorkshire 65%
UK average 63%
North East 62%
North West 62%
Scotland 59%
South West 58%
East 52%

The largest proportion of those surveyed (30%) had received between 10 and 20% of the value of their new home with a further 37% benefitting from between 5 and 10%.
 
For the largest percentage (25%) of the First Time Buyers surveyed it took between one and two years to save a deposit, however for almost one in five (18%) it took between four and five years to manage to put aside the required deposit for their first property.

Length of time to save deposit %

1 to 2 years 25%
4 to 5 years 18%
6 months to a year 18%
2 to 3 years 17%
3 to 4 years 10%
Over 5 years 7%
Less than 6 months 4%

Clydesdale and Yorkshire Banks continue to remain supportive of First Time Buyers and have just lowered the rates on their First Time Buyer mortgages. Those looking to buy their first home can now benefit from a 95% LTV mortgage with a rate of 4.99%. A new LTV tier at 90% has also been introduced at 3.99%.
 
First time buyers taking the new 3 year fixed rate deals will also benefit from the banks’ current offer of no arrangement fee, saving £999, free standard valuation and £250 cashback on completion.
 
Andrew Pearce, Retail Director for Clydesdale and Yorkshire Banks, said: “This research underlines the challenges that First Time Buyers can face when trying to take their first steps onto the property ladder.
 
“Many people can struggle to save a deposit and our survey highlights that a significant proportion turn to family and friends for financial support.
 
“Clydesdale and Yorkshire Banks have continuously supported First Time Buyers and have now offered 95% mortgages for more than 10 years and we hope our new lower rates will also help more customers to buy their first home.”
 
For more information, visit cbonline.co.uk or ybonline.co.uk.