Buying a house is a top life goal for millennials in the North West (47%), but more than half (51%) say they can’t afford a deposit, according to new research from Lloyds Bank.
Meanwhile, two in five (40%) of parents in the region with millennial-aged children would like to help financially but worry they’ll need the money later in life.
The research comes as Lloyds Bank launches a new way for families to help their children onto the property ladder while still earning market-leading interest on their savings.
Its new Lend a Hand mortgage removes the need for first-time buyers to save for a deposit and instead uses the savings of a family member, who can contribute up to 10% of the loan as security.
The three-year fixed mortgage has a rate of 2.99% and offers parents a fixed rate of 2.5% interest on their savings for three years.
Robin Bulloch, Managing Director, Lloyds Bank, said: “Taking your first step onto the property ladder is a rite of passage for many people, but with the average first-time buyer house price in the North West having risen by nearly a quarter over the past decade, buying a first home remains a distant dream for many young people.
“Families are often willing to help but many are worried that they won’t be able to access savings later in life or during retirement.
“We want to help families reach these milestone moments, and Lend a Hand is just one of the ways we can do this, as part of our commitment to lend £30billion to first-time buyers by 2020.”
The deposit mismatch
Millennials in the North West believe they will need a £21,703 deposit to get the keys to their first home – six times more than their parents needed for their first property (£3,417).
Although parents recognise the struggle their children face to get onto the property ladder, only a quarter (24%) think their child should save more.
The poll reveals that 18-35 year-olds in the North West are saving on average £118 a month, and that parents have average savings of almost £40,000.
As well as two in five worrying about giving their savings to their children because they might need them later in life, a further 41% think they may need the money for retirement.