Friday 25th April 2008
A lack of funds is causing many first-time buyers (FTBs) to turn to their relatives for financial assistance, an industry body asserts.
Bernard Clarke, spokesperson for the Council of Mortgage Lenders, explains that the help is needed by many FTBs who cannot afford to put down a deposit on a new house.
The growth in parents equity effected by house price inflation in recent years is suggested as one source from which they may derive the cash needed to assist their offspring.
However, Mr Clarke notes that not everyone has the luxury of borrowing money from a family member.
"Its only open to those who are able to call upon that help and whose relatives are able to provide it," he states.
The spokesperson concludes that more assistance is likely to be available from parents who have owned their property for longer.
He points out that such homeowners are likely to have seen greater rises in their property valuations and should also have less still to pay on their mortgages.
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