18th November 2013
New research from Clydesdale and Yorkshire Banks shows that 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.
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|
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%|
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.”