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Bank of Mum and Dad

A massive majority of first time buyers are relying on their parents to stump up the cash for them to get a foothold on the property ladder, new research shows.

A huge 85 percent of first time buyers are resulting to parental aid, a figure up from 38% in 2005, according to Clydesdale and Yorkshire Banks.

Steve Reid, retail director for Clydesdale Bank, said: ‘It is becoming increasingly commonplace for first time buyers to require financial help from their parents when buying their first home.

The Clydesdale bank is one of few lenders that offers a 95% mortgage, fixed for three years at 6.99%, before moving to the standard variable rate. The arrangement fee is £599 and the bank will pay to value the property.

But if you can stump up 10% of the deposit, there’s obviously more offers to choose from, with the Post Office’s 90% loan to value range, offering two to five-year fixed rate deals with either no fees or help with paying them.

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