Unlocking homeownership: How support from family and lower mortgage rates can help first-time buyers

In this blog, we dive into how the support from family members and the lowering of mortgage rates can fast-track your journey to owning your dream home. Please note that the information within this blog does not substitute for professional advice and we encourage you to consult your solicitor or other professional advisers.

The Bank of Mum and Dad

The term "Bank of Mum and Dad" has become a significant player in the housing market more recently, with many parents and guardians stepping in to help their children buy their first home with a gifted deposit.  
 
According to estate agency Savills, gifts and loans from the Bank of Mum & Dad (BOMAD) for housing deposits alone totalled £9.4 billion in 2023 — almost double the £5 billion as seen in 2019. Further research from Legal & General also identified that 335,000 house purchases were supported by the ‘Bank of Family’ in 2024, demonstrating the significant rise of families stepping in to help loved ones secure their dream home.  
 
At Gleeson, we know that saving for a deposit can be challenging, and we don’t want that to stop you from finding your ideal home. To help your money go that little bit further, we offer a deposit contribution of up to 5% on selected plots and developments. With this contribution and extra support from your family, you could speed up the process of buying your new home.  
 
It's important to have open and honest conversations with your family about the terms and expectations of their support. Additionally, consider the legal and financial implications, such as potential tax liabilities and the impact on your parents' finances.

Take advantage of lower mortgage rates

In recent months, the news on the mortgage scene has become more positive. The Base Rate was cut to 4.5% on 6th February 2025, with further predictions that it could reach 4% by the end of 2025. Additionally, UK inflation has fallen more than expected to 2.6% as of April 2025, according to the latest Office for National Statistics data. 
 
This Is Money recently reported that the lowest fixed rate mortgage offer has dropped below 4% based on a 60% LTV ratio, with a growing expectation that rates may continue to fall throughout the year, subject to changes within the wider economy. Lower mortgage rates can significantly reduce the cost of borrowing, making homeownership more affordable. Here are some top tips to consider when beginning the search for a mortgage on a new home.

1. Consider your options: Different lenders offer different rates and terms, so it's essential to compare offers and speak with a specialist to find a solution that’s right for you.  

2. Improve your credit score: A stabilised credit score can help you possibly qualify for more competitive interest rates. 

3. Fixed vs variable rates: Fixed-rate mortgages offer stability with consistent payments, while variable-rate mortgages can sometimes start lower but may fluctuate.

Mortgage lenders change the rates of their mortgage products regularly, so it’s worth consulting with an independent financial advisor, who can offer advice and suitable options based on your circumstances. 

Start your homebuying journey

The journey to homeownership can be smooth sailing with the right support and financial awareness. By understanding the role of the Bank of Mum and Dad and taking advantage of lower mortgage rates, first-time buyers can confidently take their first steps onto the property ladder. Remember to do your research, communicate openly with your family, and seek professional advice to make the right decision for you.

Ready to begin your search for a new home?

Find your preferred Gleeson development today and contact our Sales Executive to find out more about the house styles, schemes and offers available.