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The Bank of Mum and Dad

July 10th 2014
By: Melanie Hollidge

A recent study from Santander Mortgages has shown that 68% of parents who help their children financially have done so as a gift and will not receive any of it back.  72% of females were gifted the money by their parents, compared to 62% of men.  29% received the money as an interest free loan, while 3% contributed towards their children’s deposit as an investment.

Current homeowners have received, on average, 49% of their deposit from their parents or partner’s parents.  The average first time buyer’s deposit is now just under £25,000 – children are looking to receive £17,900.  Over 22% anticipate that their parents will contribute £20,000 or more.
34% of parents with children who are still waiting to buy a home, say they will help their children financially by contributing towards a deposit to help them on the ladder.
 
Miguel Sard, Head of Santander Mortgages, said, “Raising a deposit can be a huge challenge and our research shows that many rely on financial help from their parents in order to get a foot onto the property ladder. Buying your first home can be daunting but there are ways to make it easier and support is available to help first time buyers with upfront costs.”