Young people saving for mortgage deposits are moving in with their parents, according to new research form Abbey.
First-time buyers are returning to the family home in order to save for mortgage deposits. Dubbed "Baby Boomerangers" by Abbey, these potential homeowners are often aged between 18 and 24.
A study from the mortgage provider found that one million 18-24-year-old have moved back in with their parents or have delayed moving out to boost their deposit pots. A further 440,000 25-34-year-olds have also moved home, as have 471,000 of those aged between 35 and 44.
Nici Audhlam-Gardiner, director of Abbey Mortgages, said that moving back to the family home can often be a sensible decision for young buyers looking for their first step on to the property ladder.
"Millions of Britons have realised that sometimes you have to take one step backwards in order to go two steps forward," she said. "So while returning home or delaying your plans to move out might feel like a sacrifice, it's actually a great opportunity to save enough money to put down a deposit on a property of your own. This is especially important in the current market where the bigger deposit, the better the mortgage rate you will be eligible for."
Abbey announced last week that it will pass on the Bank of England's latest rate cut to its customers with tracker mortgages. The full 0.5 percent reduction will take effect from March 1st.
