Bank of Mum and Dad increasingly becoming a 'necessity'

Aldermore’s first-time buyer index has revealed that 23% of prospective first-time buyers plan to use the Bank of Mum and Dad to help fund their deposit.

The majority of respondents (54%) will use their parents’ cash savings.

Damian Thompson, director at Aldermore, said: “Young people have had a stark fall in home ownership [over] the past two decades, and with a challenging environment of high house prices, shortage of suitable homes and weak wage growth, this trend will likely not change any time soon.”

The index also found that 19% of first-time buyers claimed that their parents would downsize in order to support them, while 17% stated that their parents would remortgage their property.

Damian believed that the Bank of Mum and Dad had become a “necessity”.

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