How to help the not-so-young leave your nest

Parents eager to ease out adult returners do have options. By Chiara Cavaglieri and Julian Knight

You rear them, send them to school and then finally pack them off to university to strike out on their own. That's how it used to be, but not any more. It seems that financial pressures are forcing more and more twenty and even thirtysomethings to return home to their parents, sometimes to stay for good.

The Office for National Statistics revealed last week that there are three million adults between the ages of 20 and 34 living with their parents, 20 per cent up on 1997. This increase could be down to a number of factors, but it does coincide with a 40 per cent hike in the average house price between 2002 and 2011, as well as an increasing ratio of house prices to first-time-buyer incomes. If young adults are facing increasing university fees with earnings that aren't keeping up with house prices or rents it's no surprise that they are finding it difficult to leave home.

Luckily, there are several things parents and their offspring can do to make the transition much easier. The bank of mum and dad is already helping many first-time buyers put down hefty deposits and some are also acting as the guarantor to appease nervous lenders.

"The standard guarantor approach can help where the child can't quite reach the level of borrowing required at the moment and the parent guarantees the mortgage. The Mortgage Works offers specific guarantor mortgage deals including a two-year fixed rate at 5.59 per cent to 85 per cent loan-to-value with a £395 fee," says David Hollingworth from broker London & Country.

Other guarantees take additional security on your parents' assets. For example Aldermore can lend up to 100 per cent of the purchase price but will take a charge on parental equity on any borrowing above 75 per cent LTV. They offer two and three-year fixed rates at 5.98 per cent with a fee of £1,298. National Counties BS and Bath BS also offer similarly structured deals and the Lloyds lend-a-hand scheme is available to 95 per cent LTV with parents locking away savings as additional security.

Otherwise, you can scan the market for the best high loan-to-value deals around.

There aren't too many to choose from but Clydesdale and Yorkshire building society have just cut the rate on its 95 per cent LTV mortgage to 5.99 per cent fixed for three years and have scrapped the £599 product fee. If you could raise a 10 per cent deposit, the rate falls to 4.99 per cent.

There are also Government-backed initiatives, such as NewBuy and shared equity scheme Firstbuy, as well as deals that lenders are pushing such as Nationwide's Save to Buy, which asks customers to save towards a mortgage deposit for between six months and three years to then be able to apply for a 5 per cent deposit loan.

If you're willing to share, as with renting, the most cost-effective way to buy a home is to club together with friends. According to new research from the magic number here is three with average mortgage repayments on a three bedroom home spread equally standing at £334 per person. In comparison, two individuals would be coughing up £375 for a two-bedroom house and four would pay out £424 in monthly repayments.

It also means you won't have to bear the full burden of other costs such as conveyancing, utilities and council tax alone. offers a joint mortgage service for friends or family who want to buy together. As "tenants in common", rather than "joint tenants", each party can sell their share but be warned you are still all responsible for the mortgage and will be held liable if anyone defaults on their payment.

Use this time to dedicate yourself to cutting back and disciplined saving which will help you build up enough money to make it on your own sooner rather than later.

"If mum and dad are prepared to let you stay rent-free you have to apply yourself. Bite the bullet and remember you're doing this for a purpose, and that is to save up. It's no good going out every night spending a fortune. You've got to have a disciplined approach," says Harry Katz from independent financial adviser Norwest Consultants.

Equities are only suitable for long-term investments so concentrate, instead, on saving into a cash ISA to keep your money away from the taxman. You can put £5,640 away each year and two-year fixes pay up to 4 per cent. Or stick with an easy access account paying up to 3.35 per cent.

A survey carried out by Sainsbury's Finance found 20% of new university students have never washed their own clothes, while 14% cannot even boil an egg
science...and the results are not as pointless as that sounds
Dominique Alderweireld, also known as Dodo de Saumure, is the owner of a string of brothels in Belgium
newsPhilip Sweeney gets the inside track on France's trial of the year
Cumberbatch was speaking on US television when he made the comment (Getty)
Life and Style
Arts and Entertainment
Tom DeLonge, Travis Barker and Mark Hoppus of Blink-182 pictured in 2011.
musicBassist Mark Hoppus and drummer Travis Barker say Tom Delonge is 'disrespectful and ungrateful'
Arts and Entertainment
Olivia Colman and David Tennant star in 'Broadchurch'
tvBroadchurch series 2, episode 4, review - contains spoilers
cyclingDisgraced cycling star says people will soon forgive his actions
Britain's Prince Philip attends a Garden Party at Buckingham Palace in London
Arts and Entertainment
Ed Sheeran will play three sell-out gigs at Wembley Stadium in July
Lena Dunham posing for an official portrait at Sundance 2015
Arts and Entertainment
Under the skin: Sarah Kane in May 1998
theatreThe story behind a new season of Sarah Kane plays
Arts and Entertainment
Preening: Johnny Depp in 'Mortdecai'
filmMortdecai becomes actor's fifth consecutive box office bomb
Bradford City's reward for their memorable win over Chelsea is a trip to face either Sunderland or Fulham (Getty)
Lars Andersen took up archery in his mid thirties
Finacial products from our partners
Property search
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Money & Business

    Ashdown Group: Client Services Manager - Relationship Management - London

    £30000 - £32000 per annum + benefits : Ashdown Group: A highly successful, int...

    Recruitment Genius: Credit Controller / Customer Service

    £18000 - £20000 per annum: Recruitment Genius: This rapidly expanding business...

    Guru Careers: In-House / Internal Recruiter

    £25 - 28k + Bonus: Guru Careers: An In-house / Internal Recruiter is needed to...

    Recruitment Genius: Tax Assistant

    Negotiable: Recruitment Genius: A Tax Assistant is required to join a leading ...

    Day In a Page

    Woman who was sent to three Nazi death camps describes how she escaped the gas chamber

    Auschwitz liberation 70th anniversary

    Woman sent to three Nazi death camps describes surviving gas chamber
    DSK, Dodo the Pimp, and the Carlton Hotel

    The inside track on France's trial of the year

    Dominique Strauss-Kahn, Dodo the Pimp, and the Carlton Hotel:
    As provocative now as they ever were

    Sarah Kane season

    Why her plays are as provocative now as when they were written
    Murder of Japanese hostage has grim echoes of a killing in Iraq 11 years ago

    Murder of Japanese hostage has grim echoes of another killing

    Japanese mood was against what was seen as irresponsible trips to a vicious war zone
    Syria crisis: Celebrities call on David Cameron to take more refugees as one young mother tells of torture by Assad regime

    Celebrities call on David Cameron to take more Syrian refugees

    One young mother tells of torture by Assad regime
    The enemy within: People who hear voices in their heads are being encouraged to talk back – with promising results

    The enemy within

    People who hear voices in their heads are being encouraged to talk back
    'In Auschwitz you got used to anything'

    'In Auschwitz you got used to anything'

    Survivors of the Nazi concentration camp remember its horror, 70 years on
    Autumn/winter menswear 2015: The uniforms that make up modern life come to the fore

    Autumn/winter menswear 2015

    The uniforms that make up modern life come to the fore
    'I'm gay, and plan to fight military homophobia'

    'I'm gay, and plan to fight military homophobia'

    Army general planning to come out
    Iraq invasion 2003: The bloody warnings six wise men gave to Tony Blair as he prepared to launch poorly planned campaign

    What the six wise men told Tony Blair

    Months before the invasion of Iraq in 2003, experts sought to warn the PM about his plans. Here, four of them recall that day
    25 years of The Independent on Sunday: The stories, the writers and the changes over the last quarter of a century

    25 years of The Independent on Sunday

    The stories, the writers and the changes over the last quarter of a century
    Homeless Veterans appeal: 'Really caring is a dangerous emotion in this kind of work'

    Homeless Veterans appeal

    As head of The Soldiers' Charity, Martin Rutledge has to temper compassion with realism. He tells Chris Green how his Army career prepared him
    Wu-Tang Clan and The Sexual Objects offer fans a chance to own the only copies of their latest albums

    Smash hit go under the hammer

    It's nice to pick up a new record once in a while, but the purchasers of two latest releases can go a step further - by buying the only copy
    Geeks who rocked the world: Documentary looks back at origins of the computer-games industry

    The geeks who rocked the world

    A new documentary looks back at origins of the computer-games industry
    Belle & Sebastian interview: Stuart Murdoch reveals how the band is taking a new direction

    Belle & Sebastian is taking a new direction

    Twenty years ago, Belle & Sebastian was a fey indie band from Glasgow. It still is – except today, as prime mover Stuart Murdoch admits, it has a global cult following, from Hollywood to South Korea