In the first of two pieces from Aldermore Bank for our First Time Buyer content week, Jon Cooper, Director of Mortgages, explores how family support has shifted from a helping hand to a critical factor in getting onto the property ladder, and the growing risks this creates for buyers, parents and advisers alike.
For many first-time buyers, family support has moved from helpful to essential. Without it, purchases are stalling or falling through. But the way that support is being provided is changing – and not always for the better. Our latest First Time Buyer Index shows how stretched families have become, with more than half of first-time buyers saying parental support has been reduced or withdrawn as living costs rise. At the same time, expectations haven’t adjusted, with one in five still expecting their family to fund around half of their deposit.
That gap is creating real tension. Buyers are planning around money that may never arrive, while parents feel under pressure to step in, often at a meaningful cost to their own financial security.
It’s not just spare savings being used; parents are downsizing, selling second properties, drawing from pensions and even remortgaging their own homes to help close the deposit gap. In some cases, buyers don’t fully understand how the money is being raised, increasing both affordability risk now and vulnerability later.
Gifted deposits, particularly where pensions or later-life borrowing are involved, need careful scrutiny. Advisers are often the first to spot when support isn’t truly surplus capital and could compromise the giver’s long‑term position. As reliance on the Bank of Mum and Dad grows, so do the risks around undocumented gifts, unspoken expectations of repayment and future financial strain.
We’re also seeing families adapt in practical ways. Some buyers are living rent‑free to accelerate saving, while others are facing longer delays as support reduces or disappears altogether. In a market where affordability is already tight, clear and early conversations matter more than ever. Advisers play a crucial role in making sure family support is realistic, sustainable and properly structured for both sides.
