The number of searches by brokers for products accepting gifted deposits jumped by 10% month-on-month, Legal & General (L&G) Ignite has found.
The latest data from the mortgage research and sourcing platform revealed this rise in borrowers relying on financial support from the ‘bank of family’, with searches for first-time buyers jumping by 9% between October and November.
This follows on from a 13% month-on-month increase in these searches between September and October, with first-time buyers consistently ranking in the top four searches since September 2023.
A further 12% increase in searches for gifted equity and concessionary purchases was also recorded in November. L&G said this highlights the ongoing need for external financial support in the property market.
The number of searches on L&G Ignite from October to November increased by 1%, with the group stating that the “overall market demand remains resilient” despite economic uncertainties and the challenges posed by the cost-of-living crisis.
Furthermore, L&G has found there is an emerging trend among portfolio landlords looking to increase their market share.
Searches related to ‘second residential property’ experienced substantial growth of 29%, whilst brokers searching for HMO products increased by just 20%, reflecting a growing interest in diverse property types within the portfolio landlord segment, according to L&G.
Managing director at L&G mortgage services, Kevin Roberts, said: "As the property market continues to evolve, it's clear that first-time buyers are driving significant momentum, seeking support from the bank of family to navigate affordability challenges. The data from L&G Ignite also highlights the resilience of the overall mortgage market, with diverse trends among portfolio landlords and a sustained interest in capital raising, even during these uncertain times.
"Affordability does remain a persistent concern though, reflected in the notable level of defaults and missed mortgage payments, as well as the continued reliance of first-time buyers on the support of family and friends. It is important that all borrowers, no matter their circumstances, seek the guidance of an expert adviser, to ensure they are taking the optimum path in what remains a fast-moving and complex market."
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