NatWest has launched a new Family-Backed Mortgage to help ‘re-nesters’ move out of their parents’ home.
According to new research, an increasing number of young adults are swapping independence for a greater ability to save, with Brits now living with their rents until the age of 28.
Rising rents and high property prices have created a “stay-at-home generation” who prioritise financial security over flying the nest, the research shows.
And whilst many are yet to leave the family home, the survey also indicates there is a growing trend of ‘re-nesting’.
Almost a quarter (23 per cent) of the parents surveyed have had their adult children return to live at home after initially moving out, with the average ‘re-nesting’ period lasting approximately two years, though 17 per cent stay for over three years.
This shift has pushed back the “Empty Nest” life stage for parents who may be preparing for their own retirement, as they continue to provide financial support to their children.
The average age that children are moving back home is 26, although 21 per cent of those returning to their parents’ house are aged over 30.
One in five parents surveyed said they would need to agree a set timeframe for the “re-nesting” period, but 56 per cent say they would have their children move back home indefinitely with no agreed end date.
To help youngsters reach their home ownership goals, NatWest has introduced its Family-Backed Mortgage, which allows eligible customers to apply for a joint mortgage with a family member or friend, while still buying the property in their own name.
The new product aims to boost the amount a customer can borrow by combining their income with the income of a family member or friend.
The family member or friend who is being added to the mortgage is required to get legal advice, so there is clarity amongst all parties when entering the arrangement.
Barry Connolly, Managing Director of Home Buying and Ownership at NatWest, commented: “We are committed to providing more pathways to home ownership and helping first-time buyers to achieve their goals.
“The research released today shows that many children across the country are having to return to the homes that they grew up in well into their 20s & 30s to give themselves the financial headroom to save for a deposit.
“Many are welcomed back by their parents, but the research today suggests that these living arrangements are not without sacrifice for all parties.
“Our Family-Backed Mortgage offers an innovative solution, allowing friends or family members to help first-time buyers own their first home by adding their income to the mortgage application.
“We hope that it instils hope in our customers that their home ownership dreams can be realised.”