Did you know your son, daughter or grandchild might be able to buy a home with just a 5% deposit - or even none at all? If you have a younger family member who's still at home or renting because they've written off the idea of buying, it may be worth them taking another look. Low and no-deposit mortgage options do exist, including schemes designed for first-time buyers and for renters with a strong track record of paying rent on time.
It's a bigger issue than many families realise. Analysis of ONS and HM Land Registry data by conveyancing solicitors Bird & Co found that almost 3.8 million young adults aged 20 to 34 are now living with their parents in the UK - the highest figure since records began in 1996, when the number stood at around 2.7 million. The research points to the cost of a deposit, now equivalent to roughly two years' rent across much of the country, as a key reason why so many are staying put.
Separate research from lifetime ISA provider OneFamily found that three in five adults aged 18 to 40 - more than 12 million people - have lived with parents or relatives specifically to save towards a first home. With average UK house prices sitting well above seven times average earnings, it's easy to see why saving a deposit from a standing start can feel out of reach.
A survey for the Building Societies Association found that most renters aged 25 to 44 had expected to be homeowners by now, and a third of them believe they will never own a home at all. That sense of resignation is understandable, but it doesn't always reflect what's actually on offer. Many people - and many parents of grown-up children - simply aren't aware that low and no-deposit schemes exist.
"We speak to a lot of parents who are keen to help their children take that first step but assume a huge deposit is the only way in. It isn't always the case - low and no-deposit options do exist, though they're not available to everyone and every lender has different criteria."
What someone can qualify for will depend on their income, credit history, and personal circumstances, so there's no one-size-fits-all answer. If you have family who've quietly given up on the idea of buying because they think a deposit is out of reach, encouraging them to have a conversation with us could be the most useful thing you do for them this year. The best way to find out what they could qualify for is to talk it through with us.
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