A survey of those looking to buy their first home reveals 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.
Just over six out of ten (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, that 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.
The Bank of Mum and Dad is also still very much alive, with 81% of would be first-time buyers expecting some of the funds to come from here. One in five (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 almost half (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 could be far more savvy when saving for their first homes as they’re 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.
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