Parents stepping in to help first time buyers

With the current climate, it is no surprise that more first time buyers are relying on the bank of mum & dad to try and get a foot on to the property ladder.

As a first time buyer myself, and as a young parent, I feel I will continue to be hit hard by the credit crunch. Lenders are demanding increasingly higher deposits, and at present nearly 1 in 4 mortgages requires a deposit of 40%, , and the mortgages available to me are now practically non-existent as there are no deposits below 15% of the total value!

So, despite the falling house prices and historically low interest rates I still can't buy without some assitance. I am currently renting in the North West, which is an area that offers the biggest savings to buyers over renters, with it costing around £80 a month less to buy a property than to rent a similar one, followed by Wales, where buyers could save around £70 a month by buying.

Nici Audhlam-Gardiner, Director of Abbey Mortgages, recently said: "The tide is turning in favour of first time buyers. With property prices falling and competitive mortgage offerings now available, those who have built a significant deposit will be able to reap the benefits across most of the country with lower monthly outgoings."