This is the verdict of Aldermore Bank which discovered prospective first-time buyers receiving help from family to fund their deposit had jumped from 22% in March 2020 to 33% in March this year.

A survey by the mortgage lender also found those getting assistance from inheritance increased to over a quarter (27%), from only 6% a year ago in March 2020.

What’s more, its findings revealed the Bank of Mum and Dad had expanded to the Bank of the Extended Family with an increasing number of grandparents, siblings and wider family members helping out with the property purchase.

Almost half (45%) of those getting family assistance were receiving it from grandparents.

Selling assets

Aldermore’s new First Time Buyer Index, which surveyed over 1,000 prospective new buyers, also found parents were going to much greater lengths to assist children with nearly two in five (38%) remortgaging their property.

As many as 38% sold an expensive asset such as a car or holiday home and over a third (36%) released equity in their property. 

Other popular support for first time buyers include downsizing (18%), selling a second/buy to let property (18%), taking money from pensions (17%) or stocks/ shares (16%).

Jon Cooper, head of mortgage distribution, Aldermore said: “Young people have had a stark fall in home ownership the past two decades, as the challenging environment of high house prices, shortage of suitable homes, and weak wage growth have hindered home buying chances.

“The Covid-19 pandemic has only increased the difficulties faced by new buyers meaning the Bank of Mum and Dad providing support has increasingly become a necessity, rather than just a helping hand.

“This generation of first-time buyer is more diverse in financial circumstances than ever before, but there are also more pathways to home ownership than a decade ago.”

Deposit funding (source: Aldermore)

Parental support (source: Aldermore)