You can bank on Mum and Dad to get you on the property ladder
The Bank of Mum and Dad (BOMAD) has long been a key factor in helping first-time buyers onto the property ladder. In 2022, gifts and loans from BOMAD totalled £8.8 billion according to Savills, with this figure expected to rise in 2023 due to higher mortgage rates and the end of the governments popular Help to Buy scheme.
Since the start of the pandemic in 2020, the rates of first-time buyers using BOMAD has gradually risen, as prospective buyers struggle to gather the growing deposits as a result of a strict mortgage market. Last year nearly half (46%) of first-time buyer home purchases were financed by parents and relatives, with 170,000 buyers in total requiring financial support from their families.
Now, following the end of Help to Buy, there are groups of buyers that didn’t have a chance to use the deposit they had saved before the scheme terminated, but don’t yet have the full deposit required to purchase a home on the open market. Many of these buyers end up turning to friends or relatives for help to finance the other half of their deposit, so that they can finally get their foot onto the property ladder, instead of waiting months, or even years longer to save on their own. Just two in five first-time buyers are likely to access the market without any support this year.
Whilst high street mortgage lenders only accept money from friends or relatives if it is classed as a gift – meaning they have to declare that they don’t expect to be paid back – mortgage platforms such as Generation Home provide official deposit booster contracts to allow repayments to those that helped you secure your deposit.
We know how important it is to our buyers to say thank you to family members that help them achieve their dream of home ownership, so we have a dedicated Deposit Assist scheme, aimed at buyers who utilise the Bank of Mum and Dad, receiving a helping hand getting a deposit together for one of our homes. To be eligible for the scheme, you need to be gifted a minimum of 5% towards the deposit for your new home by your friends or relatives. When you complete on your chosen property, we will gift your friends or family £2,000 to show our appreciation and thank them on your behalf. And not only that, we will also gift you £5,000 (paid as an allowance upon legal completion). That means you can save your own money to spend on kitting out your new home with all the furniture and soft furnishings you need to make it your own.
And it’s not only our Deposit Assist scheme that first-time buyers can take advantage of. We’re part of the collaboration of housebuilders and mortgage lenders that are offering Deposit Unlock – the opportunity to borrow a maximum mortgage loan of £750,000 with just a 5% deposit. Making buying a property accessible for more buyers, Deposit Unlock gives you access to competitive mortgage products from high street lenders when you purchase a Countryside home.
As an extra boost, for a limited time we’re offering customers who reserve certain plots across a selection of our developments a contribution of up to £1,250 a month towards their mortgage for the first 12 months (paid as an allowance upon legal completion), helping first-time buyers get on the ladder sooner and making monthly mortgage repayments more affordable.
Are you ready to make your move?
There are a number of developments across Essex and London to choose from, where you can enjoy the benefits of our Deposit Assist scheme. Just launched, Westcombe Park is ideally situated in Heybridge, nestled between Maldon and Wickham Bishops. Just a 6 minute drive away, Maldon is an ancient market town situated on the banks of the River Chelmer & Blackwater, favoured for its quintessential High Street filled with independent boutiques, traditional English pubs and the scenic Hythe Quay. Coupled with the miles of Essex coastline just a short drive away providing gorgeous sea views, the collection of two to four bedroom homes at Westcombe Park are ideal for first-time buyers looking to find a place to settle down and call their own.
Beaulieu Gate, the latest phase of our award-winning community at Beaulieu in Chelmsford, is also perfect for those looking for their first home. With a collection of one to three bedroom apartments available, residents here will be surrounded by ancient parkland and architecture inspired by the unique Tudor design of Henry VIII’s palace – which is now the famous neighbouring New Hall School.
Also offering one to three bedroom apartments, Edge is situated in Hainault, part of the London Borough of Redbridge. Providing a convenient base for young professionals searching for their first home to settle down in, the homes here are located less than a mile from the centrally-located Hainault and Grange Hill train stations, which offer direct trains into London Liverpool Street in under half an hour via the Central line.
If a house is at the top of the property wish list, first-time buyers can settle down in the one-bedroom house The Brambling at Beaulieu Heath; a spacious property enjoying open-plan interiors and a high specification. Further down in southern Essex, Wolsey Park is a new neighbourhood in Rayleigh, providing a collection of two bedroom houses from £374,995, ideal for first-time buyers starting out on their buying journey.
To find out more about our first-time buyer schemes, click here.