Today, the average first-time home buyer in the UK looks very different from the buyers of yesteryear. An average Nationwide first time buyer is now 32 years old, has an average annual salary of £44,000, and an average home price of £200,000.
Unfortunately, the average income in the UK isn't even close to £44,000 – it's £27,0001. So it's no surprise to hear that the Bank of Mum & Dad is doing brisk business these days.
Research from Legal & General showed that last year, family and friends helped 305,900 loved ones to buy their first home. And parents helped finance a quarter of all UK mortgages in 2016, giving an average of £17,500 towards the price of a new home.
Over three-quarters of these"BoMaD" house purchases – 256,400 of them – were helped by parents, 22,500 by grandparents and another 27,000 by other family members and friends. As they say, it takes a village.
So how can parents help their first-time buyer children financially, even if they don't already have the cash to spare? There are several options, including our new Family Deposit Mortgage.