The ‘Bank of Mum and Dad’

Gifting Deposit for your Children

The Bank of Mum and Dad are parents who are willing to lend their children money if they are fortunate enough to be in a position to do so. For some across the UK, it’s the easiest and fastest way to raise a deposit for their first home and since 2016 the Bank of Mum and Dad have been one of the UK’s top ten lenders!

Parents are using savings, investments, equity release products and other means to be able to provide their children with the money they need to get on the property ladder – and it comes as no surprise as the average deposit has increased by 71% from £19,364 in 2008 to £33,127 in 2018 according to research by Halifax.

But are the Bank of Mum and Dad still lending?

First-time buyers are managing to find ways to take their first step onto the property ladder at the highest rate in 10 years. This increase in first-time buyers, in part, can be attributed to the Bank of Mum and Dad.

The Bank of Mum and Dad are continuing to lend in order to help their children in what appears to be difficult times, following a surge in house prices over the last 30 years. Prospective first-time buyers who plan to use the bank of mum and dad for funds has remained the same, at 23 per cent, since 2017, according to research by Aldermore.

Data collected by the firm shows that 54% of those parents willing and able to provide a helping hand for their children will draw on their cash savings.

Meanwhile, 24 per cent plan to use money generated using an equity release product, 19 per cent through downsizing, 17 per cent from remortgaging, 6 per cent by cash taken from their parents’ pension, and 4 per cent through the sale of their parents’ second home.

With increasing house prices and larger deposits needed to purchase property, many potential first-time buyers are reliant on the support of the Bank of Mum and Dad in order to own their dream home, and the mortgage market has responded to this.

Over recent years there has been more innovation from lenders looking to support this space, with many big names now offering a range of different options to support families. This includes being able to use a parent’s savings as a potential deposit or being able to use parental income to boost first-time buyer affordability.

If you’d like to help your children onto the property ladder, and want to discuss the options for their future, call Guild Mortgage Services today on 01604 372379 or email us at

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