A report from Legal & General reveals that parental and family loans for property will increase by 30% in 2017.
Last year, the “Bank of Mum and Dad” loaned around £5bn to help their children get on the property ladder, but this figure is set to rise by a staggering 30% this year as it could reach as much as £6.5bn. This would make the Bank of Mum and Dad the ninth largest mortgage lender in the UK, involving them in as many as 25% of UK property transactions.
Parents will help fund approximately £75bn worth of property purchases this year, including over 298,000 mortgages. For more information on the Bank of Mum and Dad, visit The Guardian website.