One of the biggest stresses for our generation is the looming/terrifying/very real possibility of never owning your own home.
The property market is INSANE and for most 20-somethings, the thought of anything other than a lifetime of renting can seem pretty much impossible. Cheers parents, for this wonderful economic situation that you've passed down for us all.
But with the introduction of a brand new buying scheme, you can now technically buy a house with absolutely NO deposit needed. Wait, whut?
Yep, young buyers can now get themselves a mortgage even if they don't have any money to use as the first hefty down payment. HOORAH, HOORAY and YAY, so allow us to explain what it's all about if you wanna know more - but wait for the big, slightly crappy catch to the whole thing.
Getting a deposit together is one of the biggest blocks that young people face when trying to break the endless cycle of renting and get a first foot on the property ladder. Deposits are often THOUSANDS of pounds (we're talking like, upwards of £20,000), and for a lot of people it's almost laughable to imagine being able to save that kind of money from a fairly shit salary.
So that's where Barclay's new scheme comes in, as they're now offering a 100% mortgage to first time buyers. It's the first time a no deposit mortgage has been offered since the financial crash in the mid 2000s, and is specifically designed to help you buy property.
Sounds pretty great, right? Right, but of course there is a big fat catch to the offer, and the strings attached come in the form of your parents. Oh no.
In reality, the No Deposit scheme heavily relies on the old 'bank of mum and dad'. A 10% contribution from a parent or a 'helper' is needed to be paid into a Helpful Start account by the buyer. This cash is later returned to the borrower's parents/helper after three years with interest added – provided that borrowers have kept up with their mortgage repayments during that time.
You also need to be earning £50,000 or more in order to qualify for this, which pretty much just sums up how disastrous the housing market is right now: even people earning more than £50,000 can't put up deposits.
Barclays reckon that recent research found that 35% of potential first-time buyers are forced into asking their parents for help getting a mortgage. A separate survey from Experian found that 27% of Britons aged 55 and over had given financial support to their child or someone else to help them buy their own property, even though 15% of them said they were "not at all" financially comfortable themselves.
So basically, the scheme is GREAT for anyone's parents who can help them cough up 10% of the price of the property being bought - but it also massively widens the divide with anyone who's parents CAN'T do that for them. It all just seems to confirm that this whole 'Bank of Mum and Dad' idea is the only sure way to get on the housing ladder, and that's kinda depressing.
Well that was an interesting mixture of brilliant news and bleak news.
What do you reckon to this latest idea to help us all get a home? Is it enough, or does there need to be more done? Let us know with a tweet to @Sugarscape, and make sure you check out the vid below too.