‘Bank of mum and dad’ lends £5bn a year in UK

‘Bank of mum and dad’ lends £5bn a year in UK

Mortgages, News
Lending from parents to help their children get on the UK property ladder will amount to £5bn in 2016, according to data from Legal & General (L&G). L&G says it means the so-called Bank of Mum and Dad will help to finance 25% of all UK mortgage transactions this year - at an average amount of £17,500. If this lending prowess was combined into a formal business, it would be a top 10 UK mortgage lender, adds L&G. But it warns this method of lending is coming under increasing pressure. "The Bank of Mum and Dad plays a vital role in helping young people to take their early steps on to the housing ladder," said Legal and General chief executive Nigel Wilson. But he said it highlighted a number of…
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