The Bank of Mum and Dad (BoMD) is now a £5bn UK mortgage lender and will be involved in 25 per cent of all UK property purchases in 2016.
Legal & General, the FTSE100 financial services group and Cebr, the economics consultancy, have published a new report into the role play in helping their children get on, or move up the property ladder. The research shows the Bank of Mum and Dad will lend over £5 billion, providing deposits for over 300,000 mortgages, purchasing homes worth £77 billion in 2016. The Bank of Mum and Dad is the equivalent of a top 10 mortgage lender in the UK and will be involved in 25 per cent of all property transactions that take place in the UK market this year.
Nigel Wilson, CEO of Legal & General, said, “The Bank of Mum and Dad plays an increasingly vital role in helping young people take their early steps on the housing ladder.”