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. Some 8% of those planning to take their first step on the property ladder are relying on cash from grandparents to give them a helping hand, as parents fear they’ll be dipping into their retirement savings to give their kids a head start.
- Nearly one in three (32%) of those looking to buy their first home plan to use financial aid from their family, according to research.
- The equity loan is the second part of Help to Buy. It requires a minimum 5% deposit of the property value with the government offering an interest-free loan of a further 20%. The remaining 75% is covered by a standard mortgage.
- Shared Ownership schemes allow you to purchase just a share of a home (between 25% and 75%) from a local Housing Association and pay rent – up to 3% – on the part you don’t own.
“In his 2016 Budget, Philip Hammond announced a new lifetime ISA which will launch in April 2017. This will replace the current help to buy ISA – and you’ll be able to shift your money across tax-free.”