Lending £6.5 billion: The Bank of Mum and Dad

Lending £6.5 billion: The Bank of Mum and Dad

Overall, in 2017, the Bank of Mum and Dad is expected to be one of the greatest lenders in the United Kingdom, lending £6.5 billion. What’s the most popular reason for lending BOMAD lending their children money you ask? The Bank of Mum and Dad continues to financially support their children in buying their first home, as first-time buyers continue to struggle to save for a home. It is believed this struggle of Generations X and Y is a result of intergenerational inequality and the ‘broken housing market’.

Research from the Legal & General and economic consultancy Cebr has reported a 30% increase in lending, from £5 billion in 2016. Highlighting that parents will now be involved in 25% of the UK’s property transactions, funding up to £75 billion in property purchases in 2017.

Credit: Nick Fletcher

Source: The Guardian

 

 

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