66% of aspiring home owners rent a property before they buy their first home
The first evidence has emerged that the era of record-low fixed-rate mortgages may be coming to an end after HSBC withdrew its “cheapest-ever” deal and increased rates on other products. The Council of Mortgage Lenders has said home loan affordability for both first-time buyers and home movers has never been better. In September 2016, first-time buyers spent an average of just 17.8% of their monthly household income on mortgage repayments compared to 34% in Q4 2006.
Almost half of first time buyers in the UK still need financial help to get onto the property ladder, according to research from Clydesdale & Yorkshire bank. 18% are given money from their parents to help with the deposit for their first home and a further 18% get a loan from their family. The findings also shows that slightly more first time buyers need family help than last year (48%) but it is considerably less than in 2013 when 78% required help. 66% of aspiring home owners rent a property before they buy their first home while 26% opt to stay at home with their parents or a family member to help them save for a deposit.