First-time buyers 'stuck without parental help'

Many first-time buyers are still able to get on the housing ladder because their parents are able to draw on their own housing equity to finance deposits for them, the Council of Mortgage Lenders has said.

However, this creates a situation where those who do not have parents in such a position miss out, added spokesman Bernard Clarke.

Mr Clarke stated that the practice of parents using their equity in this way had increased since the withdrawal of products such as 100 per cent loan-to-value mortgages, capitalising on the large increases in house value those buying homes in the 1980s and 1990s had enjoyed.

However, he added: "That's great for those who are in the fortunate position of having relatives who are able to and willing to do that - but not everybody's in that position."

Those who did not have parents or other support able to provide supplementary funding for a home purchase may decide to look at alternative methods of obtaining a home, such as self build.

Abbey became the last lender to withdraw 100 per cent loan-to-value mortgages earlier this month.


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