A recent report from the Centre for Economics and Business Research has hailed ‘The Bank of Mum and Dad’ as one of the UK’s top 10 mortgage lenders.
The report has estimated that over 300,000 property transactions this year will have the deposits funded by parents which is a staggering 25% of all properties bought with a mortgage.
It is expected that overall parents will lend over £5bn in 2016 alone. Statistics show on average that withdrawals from the Bank of Mum and Dad will amount to £17,500 each. The study estimates that 57% of these transactions will be gifts, while 18% offered as a loan with no interest repayment and 5% loans with an amount of interest to pay.
This huge amount of money being injected into the property market will accumulate to a combined value of properties purchased to be in excess of £77bn.
If you are a first time buyer and looking to obtain your first mortgage it’s an excellent idea to seek professional help to ensure you’re obtaining the best deal possible for your circumstance. Find out more about our First Time Buyer service or contact us.
If you are a parent considering a remortgage to assist your children in getting on to the property ladder, it’s worthwhile seeking the help of a professional who can advise you on the best method and ensure you are obtaining the best remortgage deal for your circumstance. Find out more about our Remortgage service or contact us.