Bank of Family
For years, first-time buyers have been turning to mum and dad for help with getting a foot on the property ladder. And, with high interest rates, stagnating wages and large deposits persisting, this year’s increase in family lending shouldn’t come as a surprise.
But the homebuying under 55s aren’t just turning to mum and dad for help anymore. Grandparents, aunts, uncles and friends are lending a hand financially too.
Giving has grown beyond the bank of mum and dad
In fact, 46% of all homes purchased by buyers under the age of 45, received help from family.
Amongst prospective buyers, 52% say that they would be unlikely to make a purchase without family support. 6% reported that they would never be able to make a purchase without such support.
But we know that not everyone is lucky enough to have a family who can offer cash. That’s why Legal & General are investing in building new homes and supporting innovation in the market to address the inequality. We also have products that could help give your clients more options.
More families need your advice
Good financial advice is crucial. But only one in four families who gave support had financial advice beforehand. Your clients’ families might want to help, but they don’t have the know-how.
With Bank of Family lending expected to hit £11.2 billion by 2026, there’s a huge opportunity for you to guide more families through the process. That could be talking to them about equity release, either to boost their grandchild’s deposit or to help with living costs to improve their affordability assessment.
Whichever way your clients want to support their family, the opportunity is there for you to expertly guide them through their options. What’s more, we’re on hand to help.
Articles and insights
How to talk with families about equity release
The bigger picture: Getting to know the Bank of Family
A step onto the property ladder: why families need your advice
