{"id":684,"date":"2022-03-02T09:44:08","date_gmt":"2022-03-02T09:44:08","guid":{"rendered":"https:\/\/new.contentdeployment.co.uk\/quilter\/?p=684"},"modified":"2022-03-02T09:44:45","modified_gmt":"2022-03-02T09:44:45","slug":"parental-support-for-first-time-buyers-peaks","status":"publish","type":"post","link":"https:\/\/new.contentdeployment.co.uk\/quilter\/2022\/03\/02\/parental-support-for-first-time-buyers-peaks\/","title":{"rendered":"Parental support for first-time buyers peaks"},"content":{"rendered":"<div class=\"hd-block hd-block-paragraph\">\n<p><strong>Parental contributions to help younger generations fund\ntheir first home purchase (collectively known as \u2018the Bank of Mum and Dad\u2019 or\n\u2018BoMaD\u2019) reached nearly \u00a310bn in 2021.<\/strong><\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>According to projections<sup>1<\/sup>, BoMaD supported just\nunder half (49%) of all first-time buyer property purchases last year, with\ncontributions peaking at a massive \u00a39.8bn and averaging just over \u00a358,000 per transaction.\nThis compares with an estimated \u00a36.1bn contributed in 2020 and \u00a35bn handed over\nin 2019.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p><strong>A decade of BoMaD<\/strong><\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>This dramatic increase in contributions should be considered\nagainst the backdrop of soaring house prices, manic property market activity\nand a dramatic dip in first-time buyer affordability that characterised 2021.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>Even so, parental subsidisation of house purchases has long\nbeen a feature of the UK property market, with BoMaD contributing \u00a353.9bn to\nyoung house buyers over the past 10 years. Since the 2008 financial crisis and\nthe tightening of mortgage lending criteria in 2014, mortgage credit has become\nmuch less affordable \u2013 especially for \u2018riskier\u2019 first-time buyers \u2013 forcing\nparents to step into the breach.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p><strong>Think about your own affordability<\/strong><\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>If you are looking to assist your child in their house\npurchase, it\u2019s important to think about how this will impact on your own\nfinancial stability. We can advise you on what you can afford to contribute\nwhilst maintaining your own financial resilience for the future.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p><sup>1<\/sup>Savills, 2021<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p><strong><em>It is\nimportant to take professional advice before making any decision relating to\nyour personal finances. Information within this article is based on our current\nunderstanding and can be subject to change without notice and the accuracy and\ncompleteness of the information cannot be guaranteed. It does not provide\nindividual tailored investment advice and is for guidance only. Some rules may\nvary in different parts of the UK.<\/em><\/strong><\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Parental contributions to help younger generations fund their first home purchase (collectively known as \u2018the Bank of Mum and Dad\u2019 or \u2018BoMaD\u2019) reached nearly \u00a310bn in 2021. According to projections1, BoMaD supported just under half (49%) of all first-time buyer property purchases last year, with contributions peaking at a massive \u00a39.8bn and averaging just over [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":685,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[32],"tags":[],"hd_content_source":[],"_links":{"self":[{"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/posts\/684"}],"collection":[{"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/comments?post=684"}],"version-history":[{"count":1,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/posts\/684\/revisions"}],"predecessor-version":[{"id":686,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/posts\/684\/revisions\/686"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/media\/685"}],"wp:attachment":[{"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/media?parent=684"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/categories?post=684"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/tags?post=684"},{"taxonomy":"hd_content_source","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/hd_content_source?post=684"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}