The Bank of Mum and Dad (or as it is affectionately know at Mortgage Required – BOMAD) is now equivalent to one of the UK’s top 10 mortgage lenders and is set part with over £5bn in 2016, according to research from the Centre for Economics and Business Research.

It estimates parents will be involved in 25 % of mortgages transactions taking place in the UK this year, helping with the purchase of around 300,000 first homes.

On average, parents stump up £17,500 to assist their children, some insisting it is paid back with interest, some ask for repayment upon the sale of the property but over half of parents helping out give the money as a gift.

On the one hand, mortgage lenders love BOMAD, it adds equity to the purchase and reduces their risk, but most don’t like lending where the money has been lent by the parent. Future family fall outs and a lack of “something in writing” can cause problems down the line and sometimes compromise their security.

Back in the day, there was no BOMAD, but there was 100% lending so nobody needed it anyway. I have it on good authority that one high street lender is in the market for 100% lending – watch this space!!

For more information speak to a mortgage advisor on 01628 507477

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The government has announced plans to make buying or selling a home cheaper and quicker with what is being called the “biggest shake-up to the homebuying system in this country’s history.”

Almost one in five equity release mortgages are now taken out to provide financial support to family.

According to industry data, the expected wait for those looking to buy a property has dropped from just over 11 months to less than six months.

It is common for your first mortgage payment to be higher than your subsequent monthly payments for two reasons.

Firstly, a big congratulations, you’ve now exchanged contracts! After weeks and months of waiting, you are about to move in. What should you do first?

The chancellor will deliver her second budget this autumn. Due to slow economic growth and high inflation, the government need to manage a £40 billion shortfall in public finances. There have already been reports about changes to taxes including income tax and capital gains tax.

The chancellor has advised that landlords could have another tax to pay this autumn as the Treasury decide whether to extend national insurance contributions to rental income. 

According to a report in the Guardian, senior ministers have asked Treasury officials to look into a “proportional” property tax to see how it would work as an alternative to the existing stamp duty land tax on owner-occupied homes.