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First time buyers: The end of the bank of mum and dad? First time buyers: The end of the bank of mum and dad?
(32 minutes later)
"I can't increase my offer any more without help from mum and dad." "I can't increase my offer any more without help from Mum and Dad."
27-year-old Cordelia Clark's first home felt within reach. She was about to scramble onto the housing ladder. But then a twist appeared. Cordelia Clark's first home felt within reach. The 27-year-old was about to scramble on to the housing ladder, but then a twist appeared.
One of the UK's biggest mortgage lenders, Nationwide, altered the rules.One of the UK's biggest mortgage lenders, Nationwide, altered the rules.
There's now a tighter limit on how much your family can help you when you're getting your deposit together. The Bank of mum and dad - as it's often known. There's now a tighter limit on how much your family can help you when you're getting your deposit together. The bank of mum and dad - as it's often known.
Cordelia's storyCordelia's story
Cordelia has been looking around Scarborough for the last year and has a decent income for the area.Cordelia has been looking around Scarborough for the last year and has a decent income for the area.
She'd got the biggest loan she could, and was looking for houses up to £130,000.She'd got the biggest loan she could, and was looking for houses up to £130,000.
"It's a two-bed terrace, outdoor space, no driveway or anything but would get me on the property ladder". "It's a two-bed terrace, outdoor space, no driveway or anything but would get me on the property ladder."
Cordelia has a decent credit history but reached the maximum amount she could borrow for a mortgage.Cordelia has a decent credit history but reached the maximum amount she could borrow for a mortgage.
Any more money she needed would have to come from her deposit.Any more money she needed would have to come from her deposit.
The offer was in but the estate agent called and asked for a little more.The offer was in but the estate agent called and asked for a little more.
Cordelia couldn't borrow any more money from the bank, but her parents had said they would help her out, increase her deposit and get her over the line. Cordelia couldn't borrow any more money from the bank, but her parents said they would help her out, increase her deposit and get her over the line.
But now Nationwide - won't allow the bank of mum and dad to add so much to it. But now Nationwide won't allow the bank of mum and dad to add so much to it.
The UK's second-largest lender have tightened their rules because of uncertainty in the economy.The UK's second-largest lender have tightened their rules because of uncertainty in the economy.
Now, to get a mortgage with a 10% deposit, the buyer must prove that they saved 75% of that deposit themselves.Now, to get a mortgage with a 10% deposit, the buyer must prove that they saved 75% of that deposit themselves.
Other banks have not followed on with cutting out parental help but it's still early days.Other banks have not followed on with cutting out parental help but it's still early days.
Throughout the pandemic multiple housing indexes show that the amount of first-time buyers, as a proportion of the market, has been falling.Throughout the pandemic multiple housing indexes show that the amount of first-time buyers, as a proportion of the market, has been falling.
Some mortgage brokers suggest first-time buyers with a 10% deposit or less will have seen the number of mortgage deals available to them fall by more than half.Some mortgage brokers suggest first-time buyers with a 10% deposit or less will have seen the number of mortgage deals available to them fall by more than half.
Nationwide have told Newsbeat that the decision to stop the bank of mum and dad helping people get their first home is hopefully just a temporary one.Nationwide have told Newsbeat that the decision to stop the bank of mum and dad helping people get their first home is hopefully just a temporary one.
Last month the Nationwide lowered the minimum deposit it needed from first-time buyers to 10% from 20 July.Last month the Nationwide lowered the minimum deposit it needed from first-time buyers to 10% from 20 July.
But for Cordelia, its a blow. But for Cordelia, it's a blow.
"If you see that the majority of the mortgage is coming from you, I don't really see it as a problem" she tells Radio 1 Newsbeat. "If you see that the majority of the mortgage is coming from you, I don't really see it as a problem," she tells Radio 1 Newsbeat.
"Your parents are there to support you - that's just the way life goes.""Your parents are there to support you - that's just the way life goes."
A Nationwide spokesperson told Newsbeat: "This as a temporary measure which will remain under frequent review and fully gifted deposits are accepted on lending up to 85%.A Nationwide spokesperson told Newsbeat: "This as a temporary measure which will remain under frequent review and fully gifted deposits are accepted on lending up to 85%.
"However, as one of the first lenders to return to 90% LTV lending in what remains an uncertain market, we have needed to be cautious to protect borrowers and ourselves.""However, as one of the first lenders to return to 90% LTV lending in what remains an uncertain market, we have needed to be cautious to protect borrowers and ourselves."
LTV stands for loan-to-value , the amount of the home someone is borrowing, compared to what the bank thinks it's worth. LTV stands for loan-to-value ratio, which is the value of the mortgage you are borrowing in relation to what the bank thinks the property is worth, expressed as a percentage.
Topsy Taiwo is a property expert and gives video social media advice on getting on the housing ladder.Topsy Taiwo is a property expert and gives video social media advice on getting on the housing ladder.
He says the change will have an immediate impact on young people getting their first home due to the amount who only have small deposits, but it might be a good chance for them to revaluate their requirements as a buyer.He says the change will have an immediate impact on young people getting their first home due to the amount who only have small deposits, but it might be a good chance for them to revaluate their requirements as a buyer.
"I know a lot of people are dead set on staying in the areas they've grown up in and lived in."I know a lot of people are dead set on staying in the areas they've grown up in and lived in.
"With people working from home this might be an option to re-evaluate your search criteria.""With people working from home this might be an option to re-evaluate your search criteria."
Follow Newsbeat on Instagram, Facebook, Twitter and YouTube.Follow Newsbeat on Instagram, Facebook, Twitter and YouTube.
Listen to Newsbeat live at 12:45 and 17:45 weekdays - or listen back here.Listen to Newsbeat live at 12:45 and 17:45 weekdays - or listen back here.