More help needed for prospective homebuyers

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50% of current homeowners with a mortgage had support in getting onto the property ladder, according to latest research from The Mortgage Lender (TML).

11% said that they had help from the Bank of Mum and Dad, while 6% used a Help to Buy ISA.

In addition, 5% used a LISA, 5% benefited from Rent to Buy schemes and 6% bought used Shared Ownership.

42% of this group felt that the government has not done enough historically to support first time buyers onto the ladder.

Chris Kirby, head of key accounts & specialist distribution at The Mortgage Lender, said: “Affordability has proven to be one of the most pressing issues regarding the property market, and our latest research demonstrates the impact of that on the journey to homeownership.

“With rents continuing to rise in most areas of the UK, many prospective buyers will likely feel trapped between spending more renting and high buying costs, which can lead to significant delays in being able to purchase a property, and/or having to make compromises on what or where they buy.

“On top of this, the lack of information on government schemes has led to 26% of those surveyed feeling overwhelmed with what first time buyer scheme they should use, which makes it even more difficult to ascertain a path onto the property ladder.

“Those looking to get onto the housing ladder should take time to research what options are available to them, whilst also seeking the advice and guidance of a mortgage broker, who will be able to help clarify what support there may be, but also how best to achieve the level of borrowing they’re looking for sooner rather than later depending on their situation.”

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