According to our research done by Legal & General, Bank of Family support for first-time buyers has reached record levels.
In 2023, parents, grandparents and other family members helped with 318,400 property purchases. And one in 10 people said they wouldn’t have been able to buy their home at all without this kind of helping hand.
It shows there’s a genuine need for the Bank of Family to assist with that much needed deposit.
For years, first-time buyers have been turning to mum and dad for help with getting a foot on the property ladder. But, giving has grown beyond the Bank of Mum and Dad and 47% of all homes purchased by under 55’s received help from family including grandparents, aunts, uncles or friends.
It is expected that Bank of Family lending will hit £10 billion by 2025. In the East of England, the average Bank of Family contribution towards a deposit is £32,100 according to the Office of National Statistics.
Getting the correct advice
Getting the correct financial advice is crucial. Yet, according to L&G’s survey, only one in four Bank of Family lenders sought advice before helping a loved one take a step onto the property ladder.
It is vitally important that the whole family are involved in the advice process and that both the gift or and recipient understand what their decisions might mean before they take them.
It is therefore important to seek the advice of a mortgage adviser or financial adviser to go through the options and implications before making a decision.
It may be that a family member would like to assist you but are not aware of how they are able to. Speaking to a mortgage adviser will ensure that we look at all of the facts and hopefully can come up with a solution that is going to help all parties.
If you are looking to buy a property and a family member has offered to help, then why not call us on 01702 746811 or contact us here for a free no obligation appointment.