remortgage advice leicester

Gifted Deposits More Popular than ever

Research from Legal & General has shown that parents are gifting deposits for their children now more than any recent years. In fact, if the “Bank of Mum & Dad” was actually a bank it would be one of the top 10 biggest lenders in the UK.

Parental gifted deposits in the UK most commonly appear to range around £24,000. Gifts are also received from extended family members, including grandparents, as their wealth sometimes skips a generation.

It would seem that thousands of homebuyers every year are only able to get their foot on the housing ladder because of help and financial support from their families. In fact, without these gifts, the market would be very different to how we know it.

According to the survey, almost 20% of parents who choose to help their children financially did so out of a feeling of obligation from parental responsibility.

Property prices have over-extended in comparison to wages over the recent years, putting the chance to purchase a first home on hold for many, especially if there is only one level of supporting income contributing to potential future savings.

Rent also damages a person’s ability to save for their own deposit. This is sometimes the reason as to why some individuals choose the safer option and move back in with their parents for a while, to help with saving and get them on the right track to secure a home.

But this generosity from family members could foresee a possible backlash and could affect the parent’s quality of living in retirement. Based on their survey of 1600 parents who had helped out their children, most gifted deposits were withdrawn from their own savings and pension schemes. Overall, it seems this is just an early inheritance where beforehand the parents help and advise where it’s spent.

Money Man mascot Latest Articles...

News & Opinions

Need More Help?

Contact Us

We Search 1000's of Mortgage Deals For You

Here are some of the lenders we work with...

lenders company logos
Mortgage Broker in Leiecester Open & Honest Mortgage Advice in Leicester & Leicestermoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.

UK Moneyman Limited registered in England, registered number 6789312 and registered office 10 Consort Court, Hull, HU9 1PU.

Leicestermoneyman – Business Box, 3 Oswin Road, Leicester, LE3 1HR.

The Financial Conduct Authority does not regulate most buy to let mortgages.

Your Rights | Privacy Statement