FIRST-time buyers are increasingly relying on their parents to help them get on the property ladder, says a new report.

A survey by high-street mortgage broker Bradford & Bingley has found one in six first-time buyers 16 per cent have either borrowed or were given money by their family to pay for the deposit.

In addition, 10 per cent are buying their property in conjunction with their family and nearly one in ten eight per cent will rely on their family to cover all costs associated with the purchase, such as stamp duty and furniture.

However, with many people concerned about the size of their pension pots, parents will find it harder and harder to give their children big cash sums, says the lender.

Duncan Pownall, who is Bradford & Bingley's mortgage development manager, said: "Now, though, there are a number of ways that parents can help which won't affect their retirement years."

Getting some sort of financial help from parents or family members seems to be a popular choice for first-time buyers in South Bucks. Ian McKenary, mortgage advisor for Beacon Asset Management in Marlow, believes, for some people, it is the only way to get on the property ladder.

He said: "This trend is definitely increasing. We have done two guarantor mortgages in the last few weeks alone. For quite a lot of people it's the only way they can afford to buy their own home.

"Even those who are not using their parents as guarantors are getting some kind of financial gifts towards the purchase of their home. Most first-time buyers are getting help of some sort, I know I did when I bought my house."

Parents who feel worried about risking their own home if their child fails to keep up with the mortgage repayments are right to do so but most mortgage advisors will only allow first-time buyers to borrow what they can realistically afford.

Mr McKenary adds: "A guarantor mortgage is as safe as a normal mortgage, but ideally parents should only act as guarantors for a mortgage amount that their children can eventually take over and afford on their own."

The mortgage market has increasingly responded to the plight of first-time buyers and designed specialist, flexible mortgages to help them on to the property ladder.

Mr Pownall, said: "We currently estimate around ten per cent of first time buyer mortgages are guarantor-style mortgages, and we would expect this to rise further as more and more twenty and thirty-somethings look to their parents for help to buy their first home.

"Indeed, we expect to see more lenders offering these type of products, and products, themselves becoming more innovative and competitive."

Matt Andrews