A survey from the Nottingham Building Society of people looking to buy their first home has found that 63% plan to sell one or more valuable items such as jewellery to help do this, and 14% expect to raise more than half of the funds they need this way.
62% are relying on an inheritance pay-out, with 21% expecting a fifth or more of the funds they need to come from this source.
The findings from the Nottingham Building Society, which offers the Lifetime ISA and Help to Buy ISA for those saving for a deposit for their first home, reveals first-time buyers are looking to use a wide variety of sources to help secure their deposits.
81% of would be first-time buyers are expecting some of the funds to come from the Bank of Mum and Dad. 22% anticipate they will secure more than 50% of their deposits from their parents.
The corresponding figures for the parents of their partners is 68% and 10%, and 49% relying on grandparents also.
Other sources of funding are expected to include loans from friends, which 50% of would be first-time-buyers plan to use. In addition to this, loans from family members other than their parents or grandparents were something that 48% of those planning to buy their first home intend to utilise.
Nearly all (95%) will use their cash savings, and 60% will use stock market investments.
However, The Nottingham’s research reveals that many first-time-buyers are missing out on hefty bonuses that are available via government-backed accounts such as Help to Buy ISA and Lifetime ISA.
40% have no intention of using a Lifetime ISA that can offer bonuses of up to £1000 a year. This number reduced to roughly a quarter (21%) of savers missing out but not planning to take advantage of Help to Buy ISA.
|Source of funds||Percentage of people planning to buy their first home who will use this||Percentage of would-be first-time buyers who expect to get 50% or more of their deposit from this source|
|Sell valuable assets||63%||14%|
|Parents of their partners||68%||10%|
Tina Hayton-Banks, director of member services for the Nottingham, said: “We know saving for a deposit is no mean feat for first-time buyers and our research echoes what we hear all the time across our branch network, people are exploring every available route to get on the ladder.
“It’s a shame there’s still a relatively low awareness of products that can help them get there faster, such as the Lifetime ISA, but it’s an account we’re proud to be offering to support first-time buyers and expect to see its popularity grow and grow.”