The ‘Bank of Mum and Dad’ has been making headlines recently, but not everyone can rely on parental help when buying their first home. Newcastle Building Society is set to hold events designed to help first time buyers get onto the property ladder without the financial backing of family.
According to Legal and General, 26% of current homeowners turned to their parents to give them a helping hand, and almost half of prospective first time buyers will receive assistance. **
The ‘Bank of Mum and Dad’ is estimated to contribute £6.5 billion to the housing market this year, lending an amount similar to that of the country’s ninth largest lender.*
The year on year rise of parental lending is evidence of the struggle facing younger people trying to enter the housing market. As property prices and demand spiral, the more difficult it becomes for those trying to raise a substantial deposit.
But while the generosity of parents is helping more people buy their own home, it widens the gap for those who are unable to access financial assistance from family.
Newcastle Building Society knows that parents aren’t always able or willing to loan or gift significant amounts to their grown up children. The bank of mum and dad has become a stepping stone for such a large number of first time buyers that others struggling to save a deposit may feel that they’ll never get there.
Luckily, the North East is one of the cheapest places in the UK to buy a home**, so first time buyers without parental support to fall back on are better placed to buy their homes right here in our region.
In fact, there are several alternative routes to financing your own home. Newcastle Building Society offers savings accounts designed to support those saving for a deposit, which are one of the most efficient ways to save. Plus, with interest rates so low and mortgages available with just a 5% deposit, buying property could be more within reach than you thought.
Newcastle Building Society is hosting an event especially for those looking to get on the property ladder. It’s designed to give clear and realistic information on what to expect when buying a home for the first time, including the costs involved. Mortgage advisers will also be available to speak to on the evening and answer any burning questions.
Act fast as spaces are extremely limited. Places can be booked by emailing events@newcastle.co.uk calling 0345 606 4488 or popping into your nearest Newcastle Building Society branch in Yarm, Stockton, Darlington or Middlesbrough.
Event Details:
Monday 16th October
The Keys, 65 High Street, Yarm
Registration 6pm – 6.30pm
Event 6.30pm – 8pm
Complimentary refreshments and a free prize draw
*Source: Legal and General, The Bank of Mum and Dad Executive Report, 2017 https://www.legalandgeneral.com/insurance/home/bank-of-mum-and-dad/Bank-of-Mum-and-Dad-Full-Report-2017.pdf
**Source: http://www.mirror.co.uk/money/britains-cheapest-streets-houses-cost-9860075
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