First-time buyers struggling without parental help, says CML
First-time buyers (FTBs) cannot easily get a mortgage without financial help from their parents, according to the Council of Mortgage Lenders (CML).
The withdrawal of 100 per cent mortgage products from the market means that FTBs are turning to family members to help them out with deposits, spokesperson Bernard Clarke said.
Parents could often afford to lend or gift mortgage deposits to their children as they had a good amount of equity tied up in their own property, he added.
However, he commented: "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."
Earlier this month Abbey withdrew its remaining 100 per cent mortgage product, which was also the last available product of that type on the market.
Mr Clarke said that personal unsecured loans were an option for FTBs eager to get on the housing ladder if they did not have savings, though he added that this was adding to their debts.
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