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A large proportion of first time buyers receive some form of financial help from their parents.
While the exact figure changes over time, it is widely reported that around a third to over half of first time buyers rely on family support when purchasing their first home.
This support is often referred to as the “Bank of Mum and Dad” and has become more common as deposit requirements and property prices have increased.
Why So Many First Time Buyers Get Help
The main reason is affordability. Saving for a deposit while covering rent and living costs can take time, especially when property prices continue to rise.
For many first time buyers, family support helps bridge the gap between what they can save on their own and what is needed to secure a mortgage.
It can also improve borrowing options. A larger deposit often leads to better mortgage rates and can increase the range of lenders available.
What Type Of Help Do First Time Buyers Receive?
Family support can take different forms depending on the situation.
The most common is a gifted deposit, where parents provide money towards the purchase with no expectation of repayment.
Others may involve more structured arrangements, such as joint borrowing or acting as a guarantor.
In some cases, parents may also help with ongoing costs during the early stages of homeownership, though lenders will focus on how the mortgage is supported independently.
Does Getting Help Make A Big Difference?
It can make a significant difference to both affordability and access to the market.
A larger deposit reduces the loan to value, which can improve mortgage rates and lower monthly payments. It can also make it easier to meet lender criteria, particularly where borrowing limits are tight.
For many first time buyers, this support can be the difference between buying sooner or needing to wait longer to build savings.
Can You Still Buy Without Help?
Yes, many first time buyers purchase without family support.
It may take longer to save for a deposit, and borrowing capacity will be based entirely on your own income and financial position.
In these cases, careful planning around savings, budgeting and affordability becomes even more important. While family support is common, it is not essential.
What Lenders Look At When Family Support Is Involved
When a deposit is provided by parents, lenders will usually require confirmation that the money is a gift rather than a loan.
They will also check that the buyer can afford the mortgage repayments independently. Even where family support is involved, the responsibility for the mortgage remains with the borrower.
If parents are involved in the mortgage itself, their financial position will also be assessed.
How We Approach First Time Buyer Mortgages With Family Support
When reviewing first time buyer mortgages, we look at how any family support fits into the overall application.
This includes confirming how the deposit is structured, ensuring it meets lender requirements and assessing affordability based on the buyer’s own income.
Where support is not available, we focus on building a mortgage plan based on savings, income and realistic borrowing levels.
Family support is increasingly common among first time buyers. The key is making sure it is structured in a way that supports the application and reflects the buyer’s long-term financial position.
