In an interesting finding, it has been found out that youngsters in the UK are expected to continue to rely on their parents big time this year for their housing aspirations!
Legal & General, the FTSE100 financial services group and Cebr, the economics consultancy, in a new report into the role the Bank of Mum and Dad plays in helping their children move up the property ladder, has made some insightful findings.
The research shows the ‘Bank of Mum and Dad’ will lend over £6.5 billion in 2017, up from £5 billion in 2016, providing deposits for over 298,000 mortgages, and helping others to purchase homes worth £75 billion. It is not a surprise that the ‘Bank of Mum and Dad’ is now on a par with the 9th largest mortgage lender in the UK (up from No. 10 last year) and will be involved in 26 per cent of all property transactions that take place in the UK market this year!
Approximately 76 per cent of the parents’ assistance goes towards the deposit while 4 per cent goes solely on mortgage payments. Parents in the South West of England are the most generous, providing £30,000 of financial support per transaction on average, even more than London (£29,400) while Welsh parents give the least – £12,500, according to the report.
The Bank of Mum and Dad will lend £6.5bn in 2017, putting it on a par with the UK’s 9th largest mortgage lender (Yorkshire Building Society, £6.6bn of lending, CML 2015)