Buying a home has become more challenging over the past decade. With rising home prices and the need for large down payments, many people are finding it tough to purchase a home on their own. In fact, recent studies show that 1 in 10 homebuyers now rely on financial help from friends and family to make their purchase—a significant increase from 1 in 15 just ten years ago.
For first-time buyers especially, saving enough for a down payment can be difficult. In some cases, they need help to close the gap between their savings and what’s needed for a mortgage. That’s when family members and close friends step in, offering financial gifts, loans, or even co-signing on a mortgage.
While this kind of support can be a major help, clear communication is important. Buyers and their loved ones should discuss expectations, repayment plans (if necessary), and any other terms to avoid future misunderstandings.
Receiving financial help from family or friends can make homeownership possible much sooner, but it’s still important for buyers to plan carefully. They should make sure they’re prepared for the ongoing costs of homeownership, like mortgage payments, taxes, and upkeep.
In a competitive market, support from loved ones can give first-time buyers the boost they need. With thoughtful planning and open discussions, this help can make the dream of owning a home a reality.
So my final question is, did you get help from your family when you bought your first home? I did. It was 1999 and I borrowed the £3000 deposit. I had to pay it back at £300 a month for 10 months. Luckily it was interest-free!
My name is Michelle Gallagher. If you are thinking of buying or selling in Lancaster or Morecambe, we would love to talk with you. At JDG we are here to help.
Speak soon
Michelle
