Mortgages –The Bank of Mum and Dad

Mortgages are like gold dust it seems. And the fact the media is crammed with news reports and features on the credit crunch and its fall-out isn’t inspiring much confidence. First-time buyers are particularly struggling as the decks are stacked against them. Mortgages for first-time buyers have shrivelled – the BBC reported the ‘end of the 100% mortgage’ making it nigh impossible for many to afford a property. The cost of buying a home has risen dramatically thanks to HIPs, mortgage fees and the increased cost of lending, on top of the routinely high cost of surveys, solicitor and estate agent fees.

Mortgages – the First Time Headache

But finding mortgages for first time buyers isn’t impossible. There are many reasons to buy now while house prices plummet, making properties previously out of their price range a new possibility. Finding competitive mortgages however has never been so crucial when you consider the list of additional costs a first time buyer has to conjure up:

• First time buyers are not accessing 100% mortgages so have to find bigger deposits
• Lenders are increasingly turning down applications for mortgages from people they consider ‘risky’ such as the self employed or contract workers
• The booming house market in the previous decade means despite the plummeting prices, houses are still priced out of many first time buyers’ affordability
• Lenders are taking fewer risks; first time buyers will have to come up with bigger deposits to secure mortgages.

Parents shell out so kids can get mortgages

It’s not surprising then that many first time buyers rely on the bank of mum and dad to obtain hefty deposits to secure competitive mortgages.

• First time buyers are now being asked for a 15% deposit to secure competitive mortgages; the equivalent of £27, 842 for the average property costing £185,616.
• The best mortgages from leading banks are only being given to buyers who can put down a whopping 25% deposit
• It’s estimated that 5.5m parents in the UK have given £116bn to their off spring to get onto the property ladder and secure competitive mortgages.
• It’s estimated another 10m parents are preparing to shell out another £223bn for their children to help them buy their first homes.

If you are looking for competitive mortgages and haven’t got parents who can afford the average £20,921 per child that supposedly one in three parents donate in the UK, you’ll need to contact an experienced mortgage advisor.

Speak To Homebank about Mortgages

If you are thinking about mortgages, remortgages or debt consolidation, let the experts save you time and money by finding the right loan for you. Homebank have qualified mortgage consultants ready to advise you with all your debt consolidation, mortgage and insurance needs. For informative, insightful advice on debt consolidation, call us to arrange a no-obligation appointment to suit you. Homebank are the “people’s mortgage broker”, with thousands of products to choose from, including some that are not readily available on the High Street. Homebank’s experienced consultants could find the ideal debt consolidation product for you. Call Homebank free now on 0800 052 3604