Lenders should consider bringing back controversial 100 per cent mortgages to combat falling home ownership rates among young people, according to the Building Societies Association, a key industry body.
The mortgages, which mean a homebuyer does not need a deposit to purchase a property, could be offered to select customers, the BSA said in a report on the growing reliance on the “bank of mum and dad” in the housing market.
These customers could include people in professions or those with “high probability of substantial inheritance”.
The BSA’s report includes a number of other recommendations to help first-time buyers, such as tax breaks to encourage the transfer of wealth to the young and measures to encourage older people to downsize.
