House buying news now, with the report in the Mirror and the Daily Mail that the younger generation are increasingly taking loans from their grandparents to try to get deposits together as they aim to get on the property ladder:
The bank of gran and grandad helps first-time buyers: One in ten rely on their relatives to help them get onto the property ladder
- Some eight per cent of first-time buyers rely on cash from their grandparents
- Compares with 13 per cent of existing home owners asked family to help
- On average people planning to buy first home expect it will take them five years
Nearly one in 10 aspiring first-time buyers are turning to the ‘bank of gran and grandad’ to help fund their deposit, a survey has found.
Record levels of first time buyers asking grandparents for help – 4 schemes to get you there alone
As well as saving parents thousands on childcare, retirees are also helping today’s generation make it on the ladder by contributing thousands to their first home deposit
Forget mum and dad, one in 10 aspiring first-time buyers are turning to the “bank of gran and grandad” to help raise their deposit, Santander research has found.
Admittedly, the Mirror’s coverage tips its hand a little, running the name of the company behind the story in the first paragraph after the headlines: Santander bank.
Miguel Sard, managing director of mortgages, Santander UK said: “Despite having to use alternative income streams over and above their salary – such as relying on the bank of gran and grandad – today’s first-time buyers are demonstrating resilience and determination to achieve their home ownership goals.”
While it’s almost certainly the case that millennials are having to borrow money from their elders – whose mortgages were more aligned to their income – it’s also the case that this story is just a way for Santander to advertise their services to first-time buyers.