FTBs turning to the ‘Bank of Family’

First time buyers (FTBs) seem to be struggling to get onto the property ladder independently, as 12% relied on financial support from family members to purchase a home in November 2023*.

Despite the government’s efforts to help FTBs with initiatives such as the First Homes scheme, some clearly need more help amidst the cost-of-living crisis. 69% of those who have become the ‘Bank of Family’ notice their own finances are negatively affected as a result. With an average sum of £25,600 being gifted¹, many parents and grandparents use their own savings and investments to help the younger generations.

 

If you’re considering making a financial gift to a family member, talk it through with us first.

 

Your home may be repossessed if you do not keep up repayments on your mortgage.
*Legal & General

7 May, 2024

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