The mortgage industry should look into developing products that allow first time buyers to tap into the equity locked in their parents' homes.
This was the conclusion of research by Peter Williams, executive director of the Intermediary Mortgage Lenders Association, for the Building Societies Association.
This is an interesting point and, of course, the products for this already exist - equity release.
Indeed, with first time buyers typically being in their mid to late twenties, it may be that their parents are in their fifties and perhaps too young for equity release.
Grandparents may be the ones more likely to consider equity release to help their family onto the property ladder.
IFA, mortgage brokers or solicitors should contact me if they wish to discuss the possibilities.
