03 May 2016

'Bank of Mum & Dad' now one of UK's biggest lenders

'Bank of Mum & Dad' now one of UK's biggest lenders


The so-called 'Bank of Mum & Dad' is now one of the UK's biggest lenders, according to a new study.

A new report into the role parents play in helping their children get on, or move up the property ladder reveals that the Bank of Mum & Dad will lend over £5billion in 2016, providing deposits for over 300,000 mortgages and  purchasing homes worth £77billion in 2016.

The lending is the equivalent of a top 10 mortgage provider in the UK and will be involved in 25% of all property transactions that take place this year.

Loans with no interest

Legal & General, which carried out the research, said younger people today don’t have the advantages the baby-boomers had, including cheap housing that delivered windfall gains.

The study found: 

  • In 2016, family and friends will help 300,000 of their loved ones to buy a home
  • The Bank of Mum and Dad will help to finance 25% of all UK mortgage transactions in 2016
  • The Bank of Mum and Dad’s average financial contribution is £17,500 or 7% of the average purchase price;
  • Over three quarters of “BoMaD” purchases – 256,400 of them – will be assisted by the buyer’s parents - with a further 22,500 and 27,000 supported by grandparents and other family members/friends respectively;
  • 57% of Bank of Mum and Dad contributions are gifts, 18% are loans with no interest and 5% are loans with interest;
  • £5bn of mortgages will be supported by BoMaD in 2016, making the Bank of Mum and Dad a top 10 lender

Independent financial advice

Aberdein Considine has one of Scotland's largest networks of independent financial advisers based at 17 locations throughout Scotland.

If you would like to speak to one of our advisers, call 0333 0044 333 or click here.

Please correct the errors below before submitting your request:

Get in touch

Our dedicated client contact team prefer to receive enquiries through our contact form. We'll endeavour to get back to you within 24 hours or during the course of the next working day.

Tick this box if you wish to receive news and offers from Aberdein Considine. By doing, you indicate your consent to receiving targeted email marketing messages from us. On each occasion that we contact you in the future, you will be given the option to opt-out from receiving such messages. You may also email marketing@acandco.com at any time to opt-out.

The personal information that you provide to us in this form will only ever be used by Aberdein Considine (as the Data Controller) for the following specifically defined purposes:

  • email you content that you have requested from us
  • with your consent, occasionally email you with targeted information regarding our service offerings
  • continually honour any opt-out request you submit in the future
  • comply with any of our legal and/or regulatory obligations