First-time buyers still can’t get on the housing ladder despite surge in mortgages

Bank of mum and dad relied upon to raise a deposit

October 10, 2012

One in five first-time buyers are still having to turn to relatives for help in getting a deposit despite the number of available mortgages rocketing in recent months. There are now 360 mortgages for first-time buyers who have a deposit of between 5 and 10 per cent. This is an increase of a fifth since last year, and is more than 3 times as many compared to three years ago.

According to Halifax, Britain’s largest mortgage provider, the average house price for first-time buyers is £122,389, meaning that about £12,000 needs to be raised as a deposit.

Pricedout, a campaign group for first-time buyers, says that until house prices return to more affordable levels then many aspiring homeowners will remain stuck in the renting trap. Spokesman Duncan Stott says: ‘There may be greater mortgage choice, but with more cautious bank lending and house prices still ridiculously high, buyers are simply stuck.’