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.
Recent posts
A welcome change in school is coming as financial literacy is due to become compulsory in schools in England.
The Government has announced that as part of the new national curriculum, children in primary and secondary education will be required to learn about budgeting, compound interest, managing money, and mortgages.
The top 10 most beautiful villages in the world
14 days ago
Forbes has published a global ranking of stunning locations and one popular picturesque corner of the UK has nabbed top spot.
Over three years after the Mini-Budget took place, we look at what the mortgage market looks like now, showing the difference in mortgage repayments.
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.”
More borrowers using equity release
1 Oct 2025
Almost one in five equity release mortgages are now taken out to provide financial support to family.
Buyers purchasing properties sooner
29 Sep 2025
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.
What to do just before you get your keys
24 Sep 2025
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?
More information
Trusted by
