The bank of Mum and Dad are helping their children get on the property ladder to the tune of £5bn in 2016.
Legal and General have conducted research into the trend of parent’s lending money to their children to help them get a foot on the property ladder. The results were staggering, and in 2017 25% of all UK mortgages will be helped by the Bank of Mum and Dad.
The average amount being loaned or gifted is £17,500. If this level of lending was collated into a centralised business then Bank of Mum and Dad would be a Top 10 UK Mortgage provider.
With interest rates in the UK being at their lowest ever, mortgages are typically affordable and often cheaper than renting. The key for many is getting the deposit together which is why the Bank of Mum and Dad is crucial for many to get onto the property ladder.
First-time buyers of Britain you’ll be pleased to know you have an advantage over buy to let investors…. Landlords need to pay a 3% surcharge on Stamp Duty (property tax) which on a purchase of £250,000 means a landlord will need to pay an additional £7,500 in Stamp Duty.
If you would like to know how much you can borrow please be in touch with our Expert Advisers on 01273 736536 or enquire by clicking here.