19 Mar The Bank of Mum & Dad…
Is open for business like never before. In fact its without a doubt one of the most aggressive banks currently in operation.
Fortunately its proprietors are experienced property owners themselves. They have seen the UK property market in operation over an economic cycle or two. They know that, looking back over their lifetime, providing financial aid to their offspring now will benefit them enormously over the long term.
Which is lucky – because no other bank is helping much right now.
Even the government’s latest scheme – NewBuy -isn’t the answer to all problems. Despite being targeted at those with smaller deposits (sounds like first time buyers to me) the whole thing is a bit of a fanfare. In fact it’s only really represents a great deal to the desperate new house developers. Other than this scheme, ALL the UK main mortgage lenders won’t touch New Build houses and flats without much bigger deposits. This poses the problem – what to do with your 95% loan on a ex-new build house after say, 2 years of ownership. There is no credible answer to this.
Which brings us back to the Bank of Mum and Dad. Actually it has been open for generations. Notably in the last boom period of 1995-2007, gifted deposits were commonplace. We just hope that your branch is open for business….
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