Parents: The new mortgage company

First time buyers are increasingly becoming reliant on their parents to get them onto the property ladder.

A new survey, commissioned by Bradford and Bingley reports that one in six first time buyers have recieved money, or borrowed from their parents in order to pay for the house deposit.

10% of FTBs are buying property in conjunction with their family and a further 8% will depend on their family to cover other costs such as furniture and stamp duty.

B&B did say that with more people becoming concerned by the size of their pension, many parents will find it harder to help their children.

Duncan Powell, B&Bs mortgage development manager said: “We currently estimate around 10% of first time buyer mortgages are guarantor-style mortgages. We would expect this figure to rise further as more and more 20 and 30-somethings look to their parents for help to buy their first home.

Indeed, we expect to see more lenders offering these type of products and other products becoming more innovative and competitive.”