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Deeper pockets - The bank of mum and dad
Posted on 2/07/19
- 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. 77% of lending is to home movers, not first-time buyers.
- The bank of Mum and Dad is expected to contribute to 259,400 property purchases this year, a 20% fall on 2018, yet their average contribution of £24,100 is up £6,000 on a year ago, double the increase in the UK house price (year to March 2019).
- Relatives and friends will be expected to delve deeper into their pockets this year than last in all regions, except the East and West Midlands. 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 family members.