Rising house prices and level incomes have forced many to search out a new fund for getting on the property ladder…
A Recent feature from the BBC noted that more than one in four buyers are still expected to receive financial help from friends or family to get on the property ladder.
In total, financial services firm Legal & General said 27% of home buyers would get assistance – up from 25% last year.
However, the average parental contribution for home buyers this year will be £18,000, down 17% from last year’s £21,600, according to L&G.
The drop shows that parents are “feeling the pinch”, the firm says.
Bank of Mum and Dad in numbers:
• The “bank” is expected to help fund 317,000 homes his year, up 3% on 2017
• Contributions are highest in London £31k and lowest in Scotland £11k
• More buyers in London (41%) receive help from the Bank of Mum and Dad than in any other area
• Under-35s are most likely to receive help from their parents, with nearly three in five getting assistance
• Some older home buyers also rely on the Bank of Mum and Dad, with 20% of those aged between 45 and 55 receiving help
One lady told the BBC that her parents had already put aside money to gift her at some point.
“I would have inherited the money anyway. Better to use it now to get on the property ladder before prices go up even further,” she said.
The money her parents provided was “gifted” and she mentioned that they don’t own any of her flat as a result of their investment.
The Simple rule is, if anyone is borrowing or lending, specialist protection advice should be sought out.
Like any investment, an investment from the The Bank of Mum and Dad needs to be protected from illness, death and inheritance taxes. We can help, we give no obligation advice and we are specialists in insurance – in fact we’ve won several awards for our advice – have a look here Awards.
The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of any tax relief depends on individual circumstances.
Interested in related stories?
- Read Jon’s moving story about his cancer diagnosis.
- Why does the bank of Mum and Dad need Protecting?
- The Benefits of an Index-Linked Life Insurance policy
- Watch our short video about why a life insurance trust is so important.
- How does terminal illness and critical illness cover differ?
- What Questions will I be asked when i speak to an adviser about Life Insurance?
Whilst you are welcome to get a quote on-line we would recommend you talk to one of our advisers.
Any quote that your adviser provides you with will take into account to your circumstances, your medical history, as well as your budget!
An on-line quote is just that – a quote – it isn’t a definite offer of cover. What really matters is the premium you are offered, after your application has been assessed.
Call Freephone 0800 644 4468 – Monday to Thursday from 09.00 to 19.00 and on Friday between 09.00 and 17.00.
Take a look at our handy guides ‘What Cover is Right for me?’
Do you suffer with a medical condition and concerned you can’t secure Life Insurance? Please view our ‘Medical Guides’ for further information.
Whilst we will make every endeavour to help someone to arrange insurance, there is no guarantee of success. All applications are subject to underwriting.
This feature was produced with thanks to BBC news, Legal and General Financial services and the Money Advice service. May 2018.