Exactly half (50%) of current homeowners with a mortgage had support in getting onto the ladder, according to a study by The Mortgage Lender.
The most common form of support was the Bank of Mum and Dad, where a parent or relative either loaned or gifted money towards the deposit, with 11% of new buyers using this funding route.
However, many also used government support to help get a leg up on the first rung of the property ladder. The survey of 2,005 found 6% used a Help to Buy ISA whist 5% used a Lifetime ISA, a government-backed savings scheme, to help raise the deposit.
Meanwhile, 6% used the Shared Ownership scheme, which enables buyers to purchase part of a property and rent the rest.
Meanwhile, 5% benefited from Right to Buy schemes.
As many as 42% of those quizzed felt that the government had not done enough historically to support first time buyers onto the ladder
Chris Kirby, head of key accounts and specialist distribution at The Mortgage Lender, said: “Affordability has proven to be one of the most pressing issues regarding the property market, and our latest research demonstrates the impact of that on the journey to homeownership.
“With rents continuing to rise in most areas of the UK, many prospective buyers will likely feel trapped between spending more renting and high buying costs, which can lead to significant delays in being able to purchase a property, and/or having to make compromises on what or where they buy.
“On top of this, the lack of information on government schemes has led to 26% of those surveyed feeling overwhelmed with what first-time buyer scheme they should use, which makes it even more difficult to ascertain a path onto the property ladder.”
The advice from Kirby is for first-time buyers to research the options available to them and also seek advice from a mortgage broker.
You can read more about mortgages available to first-time buyers here.
