Gifted Deposits More Popular Than Ever in Leicester

Research by Legal & General | Mortgage Advice in Leicester

Research from Legal & General has shown that parents are gifting deposits for their children now more than in 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.

Research from Legal & General has shown that parents are gifting deposits for their children now more than in 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.

It would seem that thousands of homeowners 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 from how we know it.

What else did they discover?

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 be a First-Time Buyer in Leicester 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Based on their survey of 1600 parents who had helped out their children, most gifted deposits were withdrawn from their own savings and pension schemes.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.