Bank of Mum and Dad (BOMAD) would rank as 11th largest Mortgage Lender
Last year, parents and grandparents handed out £6.3BILLION to help first-time buyers in the family
Clydesdale Bank, the UK’s 10th largest mortgage lender lent £5bn last year
Parents who lend their children money to help them onto the property ladder are said to be putting their pensions at risk.
The average parental contribution for homebuyers this year is £24,100, up by more than £6,000 compared to last year, according to Legal & General (L&G).
L&G said thousands of UK buyers were reliant on their parents to either get onto the housing ladder in the first place, or upgrade to a larger home.
It is estimated that one million more young people will live with their parents over the next decade, according to research conducted by the insurance company, Aviva. The company said that the main reason is the unaffordability of housing.
The study predicts that 3.8 million people aged 21-34 will live at home by 2025, 33% more than currently.
It can take 7-10 years to raise the cash deposits for buying your first home.
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