First-time buyers turn to 'bank of mum and dad' to get a mortgage



Housing minister Grant Shapps chaired a mortgage industry summit on Tuesday. The subject? First-time buyers or, to be more specific, what lenders can do to help people climb on to the property ladder. Lenders are obviously worried about this because the fewer new borrowers there are, the less profits they can make. The government is keen to kick-start the market as it will, in turn, boost the economy.


Part of the perceived problem is people think lenders won't grant mortgages at the moment. It's true that the days of easy borrowing have disappeared, but there are a few decent deals appearing, especially for those who can raise a ten per cent deposit. That's relatively positive compared with a few months ago when it looked terribly bleak for anyone hoping to buy their first home. The best deals then were only being offered to those who could raise a 40 per cent deposit – far beyond the means of almost all first-time buyers.


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