A new survey has shown that more and more millennials have given up on the dream of becoming a homeowner over the past year with 85% of those surveyed citing the struggle to be able to save for a deposit as the main reason.
The figures also echo a report released earlier this year which discovered that home ownership in England is now at a 30-year low.
Furthermore, last year it was reported that millennials in the UK will have forked out a crippling £53,000 in rent by the time they reach the age of 30 and with that figure set to climb further this year, building societies such as the Loughborough Building Society, have stepped in to give first time buyers a leg-up on that first rung of the property ladder.
Loughborough Building Society is reacting to these shocking figures by launching its First Time Buyer Family Deposit mortgage.
Aimed at first time buyers who are struggling to be able to save for a deposit, the First Time Buyer Family Deposit mortgage will mean that first time buyers can now apply for a mortgage even if they don’t have a deposit themselves. All they’ll need is a little help from parents, grandparents or a step-parent.
The mortgage comes with a range of options meaning that family members with a variety of circumstances could make it possible for prospective first-time buyers to buy their first home.
The building society will lend up to 100% of the value of the property subject to individual assessment of each application and a maximum of £300,000 and a minimum of £90,000. The actual amount available to be borrowed will be dependent on the applicant’s income after household expenses and other financial commitments have been deducted.
Gary Brebner, Chief Executive at the Loughborough Building Society, said: “It’s a sad reality that many young adults currently believe they will never become a homeowner and with the rise of house prices and the stagnation of the average salary, the story is only likely to get worse.
Initiatives such as the First Time Buyer Family Deposit mortgage are a great way to give First Time Buyers that extra helping hand that they need to get a firm foot on the property ladder and should hopefully encourage more young adults who are thinking of buying that there are other options out there and help is available.”