Money from parents and grandparents helped more young people get on the property ladder in June than at any time since December 2002.

Some 39,500 first-time borrowers signed up for a mortgage, up by 14 per cent from 34,800 in May, the Council of Mortgage Lenders said.

The organisation added that the average first-time buyer borrowed a record 3.21 times their annual income to secure a mortgage.

The latest figure is slightly up from 3.20 in May and 3.06 from the same month last year.

First-time buyers made up 36 per cent of all those taking out a home loan, down two per cent on the previous year.

Michael Coogan, director general of the CML, said: "It is interesting to see that even though average first-time buyer income multiples are the highest on record, first-time buyers are still finding ways of getting on to the property ladder.

"It is highly likely that more and more young buyers are turning to parents and grandparents to help them raise the deposit for their first home."

The CML also believes that pent up demand is now materialising into mortgages as more first time buyers finish saving deposits.

Yesterday's figures also showed that more people are also taking out tracker loans which accounted for 19 per cent of the market.

Fixed-rate products were popular with people looking for security - accounting for 68 per cent of all new loans, up from 57 per cent the year before.

But the actual number of fixed-rate mortgages declined by two per cent, down from 143,200 in May to 140,600 in June.

"This month's jump in the number of people taking out tracker loans which follow the base rate is mainly due to their attractive pricing over recent months. But fixed-rate products still remain the dominant mortgage product for the majority of borrowers.

"This is encouraging, because it shows that many people are thinking of their financial future."

The CML speaks for banks, building societies and other lenders who account for about 98 per cent of mortgage lending.