At £6.3 billion, the total value of lending in 2019 by the so-called ‘bank of Mum and Dad’ is set to be half a billion higher than in 2018, making it the UK’s 11th largest mortgage lender. Of course, 77% of lending is to existing home movers who are upsizing or downsizing, and not first-time buyers, so to be in 11th place from a starting point of 23% of the actual market, is even more impressive!
Those across the North West and South West expected to contribute over £10,000 more. In four regions of the UK, their contributions will top £29,000. 44% of friends and relatives are expected to help loved ones buy a three bedroom property, 38% a two bedroom and one in seven (15%) a property with four or more bedrooms. 70% of lending is set to be via parents, 10% by grandparents and 10% by other families.
If you are a parent of a younger child or children, it might be prudent to get a saving plan in place for the eventuality of assisting your off-spring when the time happens. This could be in the form of a savings plan, or indeed, a rental investment, which will give you a monthly yield and a larger capital growth over a 5 or 10 year period. Why not speak to our financial advisors to see how you can go about this on 01895 632211 or click this link