West Sussex housebuilder’s top tips to getting on the housing ladder without the “Bank of Mum and Dad”

According to a recent survey, over a third (36%) of parents in the South contribute £11,000 or less towards their child’s home purchase with 12% giving less than £5,000. Meanwhile, 38% of parents in the South say the money they provide is either a partial or full loan suggesting contributions are expected to be repaid.

Adrian MacDiarmid, Head of Mortgage Relations at Barratt David Wilson Homes, said: “We’re continuing to see a significant number of first-time buyers turning to family for help getting onto the property ladder. With rising house prices and the increased cost of living, support from parents and other family members remains crucial for many.

“That’s why it’s so important to make young buyers aware of the support available to them outside the Bank of Mum and Dad. From government-backed schemes to new mortgage products and developer incentives, there are more options than ever to help first-time buyers into a home of their own.

“First-time buyers may be able to borrow more than they think. To support FTBs, lenders will offer enhanced affordability assessments to customers who can prove that they can afford the repayments.”

Some of the other routes to homeownership without the Bank of Mum and Dad include:

Low Deposit Mortgages

FTBs often presume that they need to have more deposit than they actually do. More and more lenders are offering mortgages at higher loan to values, meaning that many buyers only need a 5% deposit.

First Homes Scheme

If you live in England, you could be eligible for the Government’s First Homes Scheme, which offers a discount of up to 50% on new build homes. To qualify, you need to have an income of £80,000 or less or £90,000 in London.

Councils typically set local eligibility criteria, such as key workers (as defined by the council), people who already live in the area or those on lower incomes.

Shared Ownership Schemes

Shared ownership is a home buying scheme that allows consumers to purchase a share of a property, typically between 25% and 75%, and pay a discounted rent on the remaining share to a housing association.

This makes it an affordable way to get on the property ladder when a full purchase is unaffordable. Over time, you can buy additional shares in the property through a process called "staircasing," gradually increasing your ownership and reducing your rent until you own a house outright, if this is affordable.

Own New - Rate Reducer

Buyers could see mortgage interest rates that are 2.2% or below with Own New - Rate Reducer, a scheme available on new build homes for up to the first five years.

The scheme could mean lower mortgage rates and reduced monthly payments, whether you're a first-time buyer or an existing homeowner.

Dependent on the build stage of your chosen home, Barratt David Wilson Homes, and other developers in the scheme, could contribute up to 5% of the purchase price towards your move.

The Track Record Mortgage

If you rent a home and have a good track record of paying the bill each month, you could qualify for a specialised deal from Skipton Building Society - and you don't need to save a deposit at all.

The Track Record 100% mortgage from the lender is available to renters buying their first property.

The amount you can borrow is capped as your monthly repayment can't be more than you currently pay in rent. You need to show a strong track record of paying your rent on time and in full.

An independent mortgage adviser can help you apply for the deal and compare it to others on the market.

Key Worker Deposit Contribution Scheme

Barratt David Wilson Homes has a Key Worker Deposit Scheme that celebrates the country’s millions of Key Workers including teachers, nurses, council workers and foster carers.

As a thank you for the support provided to communities, we offer key workers a contribution towards their deposit.

With the scheme, for every £20,000 spent on the purchase price of a home, a contribution of £1,000 will be made towards the deposit - up to £15,000. For a home costing £300,000, you would qualify for a contribution of £15,000.