Half of current homeowners with a mortgage had support in getting onto the property ladder, according to new research from The Mortgage Lender’s (TML)
TML’s survey reveals that 11% said that they had help from the Bank of Mum and Dad; 6% used a help to buy ISA; 5% used a LISA; 5% benefited from rent to buy schemes and 6% bought using shared ownership.
Some 42% of this group felt that the government has not done enough historically to support first time buyers onto the ladder.
TML head of key accounts and specialist distribution Chris Kirby says affordability has proven to be one of the most pressing issues regarding the property market, and TML’s research demonstrates the impact of that on the journey to homeownership.
“With rents continuing to rise in most areas of the UK, many prospective buyers will likely feel trapped between spending more renting and high buying costs, which can lead to significant delays in being able to purchase a property, and/or having to make compromises on what or where they buy”.
He adds: “On top of this, the lack of information on government schemes has led to 26% of those surveyed feeling overwhelmed with what first time buyer scheme they should use, which makes it even more difficult to ascertain a path onto the property ladder”.
And a report in this weekend’s Independent newspaper highlighted why so many want to get on the property ladder. It reveals that renters are now spending at least half their monthly salary on rent and that tenants are paying four times as much in income as homeowners on housing.
For those looking to save for a mortgage when their rents are soaring, the situation is ever-more challenging.
