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Buyers continue to rely on relatives for homebuying support - research

Mortgage searches on behalf of borrowers using gifted equity or making a concessionary purchase from a family member rose by 75% in August, research suggests.

Analysis by mortgage research and sourcing platform Legal & General Ignite found borrowers continued to rely on help from their loved ones to get on the property ladder last month.

Searches for those using gifted deposits also climbed by 35%, according to the research.


Requests on behalf of portfolio landlords climbed by 22% from July to August as buy-to-let investors looked to expand their businesses. Other landlords used financial support to enter the market, as searches for landlord/vendor gifted equity jumped by 18% in August. 

Additionally, searches for holiday let/Air B&B rose by 22% last month as landlords continued to capitalise on the pandemic-fuelled demand for staycations, Legal & General said.

The August data also confirms ‘visa’ as the most popular criteria used by advisers searching on behalf of clients – this continues to hold the top spot.

Searches on behalf of expats not in the UK and overseas customers climbed by 17% and 21% respectively, showing that foreign buyers are still looking to snap up UK property.  

With Help to Buy coming to a close, specialist lending also propped up the market in August as many borrowers considered alternative avenues. Searches for discounted market sale increased by 69% in August as buyers looked to purchase a property at a discounted price, while searches for joint borrower-sole proprietor were the third most popular criteria as other buyers considered purchasing a property with other applicants.  

Jodie White, head of mortgage products and transformation for Legal & General Technology, said: “Family gifting has been a common element of the homebuying process for some time now, and our data continues to tell this story, alongside Legal & General’s own ‘Bank of Family’ research.

“Criteria searches for gifted deposits, gifted equity, and more, continue to dominate our Ignite results, further highlighting the prominent role that family contributions play in supporting the UK’s housing system. 

“At the same time, it's clear that buyers are also relying on specialist products and alternative schemes that make it more achievable to get on the housing ladder amid the ongoing cost-of-living crisis.

“During what is continuing to be a financially challenging period for many, it's critical that advisers adopt innovative technologies to effectively handle the demand for advice across a wide range of sectors. Advice is critical right now, and advisers have a key role to play in helping buyers access a comprehensive range of options that aligns with their financial needs.”  


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