mumanddadAccording to reports in the press today, ‘The Bank of Mum and Dad’ is now equivalent to one of the UK’s top 10 mortgage lenders with an estimated £5bn plus set to be ‘lent’ in 2016.

Research conducted by L&G’s Centre for Economics and Business Research estimates that wealthy parents will be involved in 25% of mortgage transactions  in the UK this year, backing the purchase of 300,000 homes, worth almost £80bn.

On average, parents will back their children to the tune of £17,500, or 7% of the average purchase price, with 57% of contributions as gifts. The report also predicts that 18% of contributions will be loans with no interest, with just 5% including interest.

To speak Steve Padgham about your property finance or mortgage requirements, or to find out how to go about securing the best low-rate deal currently on the market six months ahead of your current deal ending, please call him on 020 8614 4782, or e-mail steve.padgham@fpgonline.co.uk.

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