The latest figures from the Nationwide House Price Index show that over the last year house price growth has overtaken earnings growth and the ratio between the two has hit a record high.
The findings revealed that a 20% deposit would equate to 110% of average income which is causing significant problems for first-time buyers hoping to get on the property ladder.
The report also said that a third of prospective home buyers received help from friends and family or an inheritance to get the deposit together – 25 years ago this figure was just 27%.
Tower Street Finance business development director Dicky Davies said: “It’s not just first-time buyers who need a helping hand from an inheritance to buy a property. Our own research found that 13% of people would use a legacy to buy a new home.
“If people are relying on an inheritance it can take up to 12 months for the probate process to complete and the funds to be released, which obviously means by the time the beneficiary receives the money, their dream home will probably have been sold to somebody else.
“Our Inheritance Advance product means people can get hold of their money quickly and simply so they don’t have to wait. We can advance up to 60% of the expected inheritance and it’s paid back from the estate once the proceeds are available.”
Visit https://towerstreetfinance.co.uk/inheritance-advance/ or call 0343 504 7100.