<\/p>\n
To a large extent the Bank of Mum and Dad is filling the gap left by High Street mortgage lenders, many of whom have stopped offering high loan-to-value deals and\/or have tightened criteria. Research shows that one in every two first-time buyers aged under 35 have received financial support from the Bank of Mum and Dad, with more than half (56%) of those under the age of 35 using a financial gift to help them step onto the housing ladder[1].<\/p>\n
Financial support<\/strong> The research follows earlier findings which showed that the Bank of Mum and Dad is stepping in to support loved ones as the economic impact of the coronavirus (COVID-19) pandemic takes hold. A third (33%) of all people looking to buy in the next five years plan on getting financial help from family or friends.<\/p>\n First-time buyers <\/strong> Total lending <\/strong> Loved ones <\/strong> With so many relying on the Bank of Mum and Dad for funding, and the country facing up to the economic implications of COVID-19, the Bank of Mum and Dad lenders themselves are still eager to help out. Nearly 74% of those who have seen their incomes fall during the pandemic say the crisis has made them no less willing to help loved ones onto the housing ladder.<\/p>\n Source data:<\/strong> Bank of Mum and Dad is playing an ever-present role in the housing market Across the UK, parents, grandparents, family and friends have been reaching into their pockets to help young, hopeful buyers and even growing families to make their housing plans a reality. These generous lenders are often funding most or all of the… Read more »<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2],"tags":[],"_links":{"self":[{"href":"https:\/\/www.paulyoungifa.co.uk\/news\/wp-json\/wp\/v2\/posts\/3270"}],"collection":[{"href":"https:\/\/www.paulyoungifa.co.uk\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.paulyoungifa.co.uk\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.paulyoungifa.co.uk\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.paulyoungifa.co.uk\/news\/wp-json\/wp\/v2\/comments?post=3270"}],"version-history":[{"count":0,"href":"https:\/\/www.paulyoungifa.co.uk\/news\/wp-json\/wp\/v2\/posts\/3270\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.paulyoungifa.co.uk\/news\/wp-json\/wp\/v2\/media?parent=3270"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.paulyoungifa.co.uk\/news\/wp-json\/wp\/v2\/categories?post=3270"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.paulyoungifa.co.uk\/news\/wp-json\/wp\/v2\/tags?post=3270"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nIn a further sign that the Bank of Mum and Dad is playing an ever-present role in the housing market, 71% of these new homeowners say they would not have been likely to buy without this financial support. Instead, they would have had to delay their housing plans by four years on average.<\/p>\n
\nLast year the Bank of Mum and Dad played an active role in 73,160 property purchases among those aged under 35 in 2020. That\u2019s only an 8% decrease from 2019 transaction levels (79,631). The research also shows that the Bank of Mum and Dad is lending on average \u00a319,000 to first-time buyers under the age of 35, with 21% of respondents in this age bracket saying they received more than \u00a330,000.
\nIn total in 2020, the under-35s received
\n\u00a31.36 billion in Bank of Mum and Dad contributions, helping them to purchase
\n\u00a318.11 billion worth of property. However, not all first-time buyers will receive the funding as a gift, with 30% expected to pay at least some of it back.<\/p>\n
\nIt\u2019s not just the under-35s that need financial support from the Bank of Mum and Dad, however. Financial support for home purchases by those aged over 35 will account for
\n\u00a32.14 billion, or 61% of the Bank of Mum and Dad\u2019s total lending in 2020.
\nWhile it\u2019s likely that this high figure is in part due to older first-time buyers looking for larger, more expensive properties as a home for their growing families, the Bank of Mum and Dad will still be behind 101,800 transactions among the over-35s \u2013 that\u2019s around 30,000 more Bank of Mum and Dad supported purchases than in the under-35s age group.<\/p>\n
\nEven one in ten (9%) people aged over 55 planning to buy said they would have had to delay their purchase without financial support from the Bank of Mum and Dad.<\/p>\n
\n[1] https:\/\/assets.publishing.service.gov.uk\/government\/uploads
\n\/system\/uploads\/attachment_data\/file\/901773\/MPT_Com_Jul_20__cir__V2.pdf\t\t<\/p>\n","protected":false},"excerpt":{"rendered":"