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Half of homeowners with a mortgage had support getting on the ladder but more help needed

Monday, August 7, 2023

Our latest research has found that 50% of current homeowners with a mortgage had support in getting onto the ladder. Common forms of help included:

  • 11% said that they had help from the Bank of Mum and Dad
  • 6% used a help to buy ISA
  • 5% used a LISA
  • 5% benefited from Rent to Buy schemes
  • 6% bought used Shared Ownership

And, 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, comments: at The Mortgage Lender, comments: “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 U.K, 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.”

Support

% of Homeowners with a mortgage that used

Bank of Mum and Dad

11%

Rent to Buy

6%

Help to Buy ISA

6%

First Homes scheme

6%

Right to Buy (England)

6%

Lifetime Individual Savings Account (LISA)

5%

Shared ownership

6%

Deals from Developers

5%

Home Ownership for People with Long-Term Disabilities (HOLD)

4%

Guarantor Mortgages

6%

Help to Build

4%

Help to Buy: Equity Loan

4%

Help to Buy: Mortgage Guarantee scheme

3%

Help to Buy (Scotland)

1%

Homebuy (Wales)

1%

Help to Buy (Wales)

1%

Co-Ownership (Northern Ireland)

1%

Right to Acquire (Northern Ireland)

0.3%

Total homeowners receiving one or more forms of support*

50%

The Mortgage Lender surveyed 2,005 nationally representative UK adults, of which 403 were homeowners with a mortgage, via Opinium between the 19th May 2023 to 22nd May 2023.

*Respondents questioned were able to choose more than one answer option on the support they received