Research carried out by What Mortgage and Larkfleet Homes discovered while 28% of house hunters expect to receive some help with gathering their deposit, 64% plan to go it alone.
However, when it comes to the actual purchase of the house, promised help failed to materialise in 6% of cases. It meant only 22% of people received family help with their deposit in the end.
Just over half of those we questioned said they were expected to pay back the money and 46% said they will not. Meanwhile, 3% said they didn’t know if they would be paying it back or not.
And when it comes to the people who are providing the loan, 58% were using the Bank of Mum and Dad but 8% were getting help from their grandparents.
Mortgage process: easy
Once the deposit is in place, the rest of the process is less challenging, according to many of the house hunters responding to our survey. Indeed, 16% found applying for a mortgage was ‘very easy’ and 41% thought it was ‘quite easy’.
Yet, there were still large numbers who had difficulties of varying degrees. Those who had been through the process generally said they found applying for a mortgage better than those who were currently searching for a house.
In partnership with Larkfleet Homes, we questioned over 400 people who had either bought a home in the last 12 months or were currently searching.
Joanne Atkin, editor of What Mortgage commented: “With house prices so high in many parts of the country, it can be really difficult to save enough for a deposit on a home.
“If you do have to rely on outside financial assistance from parents, grandparents, other family or friends, remember that your mortgage lender will want to know where the money has come from.”
Karl Hick, Larkfleet CEO, said “It is important that we understand our customers and the ways in which they finance their purchases so that we can see whether there are ways in which we can assist.
“One of those is to introduce potential buyers to independent advisers who can help them get the best possible mortgage.”
