25 Jun, 2019/ by Homeward Legal /First Time Buyer

The Bank of Mum and Dad (BoMAD) is digging ever deeper to help first-time buyers get on the housing ladder.

A new report suggests parents and other family members will help fund FTBs to the tune of £6.3 billion this year, up from £5.7 billion in 2018.

However, according to the report - produced by financial services giant Legal & General produced the report along with economic consultancy Cebr - that finance will actually purchase 20 percent fewer properties than in 2018, reflecting higher property prices.

FTBs will dip into BoMAD to purchase 259,400 homes in 2019 , down from 316,600 last year.

In England's north-west, the average loan from BoMAD has almost doubled from £12,900 to more than £24,000.

The average contribution in the south-west is now £29,700, up by more than £10,000.

Nigel Wilson, group chief executive at Legal & General, said: "The Bank of Mum and Dad continues to be the 'iceberg' mortgage lender beneath the surface of our housing market - all but invisible yet exerting a massive influence.

"This year parents or grandparents, family or friends are set to lend thousands more to fund nearly one in five house purchases.

"The Bank of Mum and Dad is a symptom of Britain's broken housing market, and it goes far beyond millennials relying on their parents as more older borrowers look to family and friends for financial support."

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