84% of parents help their children – 57% is a gift, 18.3% is a no-interest loan and 4.8% a loan with interest
The Bank of Mum and Dad contributes 26% of funds to the UK housing market
The Bank of Mum & Dad is the 9th biggest lender
With many young people struggling to find the money to put down a cash deposit, it comes as no surprise that the majority are leaning on their parents to help them find the money (AKA the bank of Mum and Dad).
A recent report from Legal and General reveals that the Bank of Mum and Dad now contributes to 26% of funds to the UK housing market, and if Mum and Dad were an actual bank, they’d be the 9th biggest lender in the market.
So if you’ve made plans for your parents to help you financially, just be aware that there’s a set procedure to follow as this money has to be officially ‘gifted’.