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Bank of Mum and Dad grows to become a £6.5bn UK Mortgage Lender

11 May 2017

The Bank of Mum and Dad (BOMAD) has grown to become a £6.5bn UK mortgage lender, on a par with the 9th largest UK lender. 

BOMAD continues to grow in importance in helping young people get on, or move up the property ladder. Legal & General’s new research on the “Bank of Mum and Dad”, underscores the huge role of families in an over-priced, under-supplied housing market.

The research reveals how parents, family and friends will lend over £6.5 billion in 2017, up from £5bn in 2016, providing deposits for over 298,000 mortgages, and helping others to purchase homes worth £75 billion.

The Bank of Mum and Dad (BOMAD) is now on a par with the 9th largest mortgage lender in the UK (up from no.10 last year) and will be involved in more than a quarter (26%) of all property transactions that take place in the UK market this year. 

Other key findings from Legal & General’s “Bank of Mum and Dad” research include: 

  • In 2016, a third of prospective homeowners received financial help to buy from friends and family – in 2017 that figure jumps to nearly half (42%)
  • BoMaD assistance has risen from an average of £17,500 in 2016 to £21,600 in 2017 – an increase of 23%
  • Millennials are the biggest recipients of BoMaD funding – 79% of BoMaD funding goes to people under the age of 30
  • 76% of BoMaD assistance goes towards the deposit – just 4% goes solely on mortgage payments 

Find out more about our research here

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