Bank Of Mum And Dad - 11st Largest Lender!
The Bank of Mum and Dad (BoMaD) is continuing to play a vital role in the UK housing market, with young and even middle-aged adults recieving financial support from their parents for their first and subsequent home purchases. BoMaD is now the 11st largest mortgage lender in the UK, looking set to lend £6.3 billion this year, up from £5.7 billion in 2018, supporting nearly 20% of transactions in the UK mortgage market.
The average contribution from BoMaD this year was £24,100, an increase from last year's figure of £18,000. This increase of £6,000 is double the average UK house pirce increase of £3,000 in the year to March and suggests a desire by homebuyers to purchase larger properties. Research shows that the most commonly purchased properties are now three-bedroom house or flats (44%) and well over a third of those lending (38%) have helped family or friends to buy a two-bedroom property. About 15% were even helping lovewd ones to purchase properties with four or more bedrooms.
Generosity set to continue
This type of funding looks set to continue with more than a third (35%) of prospective buyers who are planning to puchase a home in the next five years, expecting to rely on financial support from their family.
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