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Guest Blog: Bank of Mum and Dad Gets into the Top Ten UK Mortgage Lenders

Tue 16 May 2017

Most people could take a guess at naming some of the UK’s biggest mortgage lenders. Yet how many would include the Bank of Mum and Dad in the top ten list of lenders?

Few would focus on anything other than the main banks and building societies in the UK today. However, research conducted by Legal & General and Cebr (the Centre for Economics and Business Research) has revealed over £6.5 billion will be lent by parents this year – notably higher than last year’s figure, which was calculated at £5 billion.

Up from 10th last year to 9th this year

The Bank of Mum and Dad was 10th in the top ten last year, and has risen by one position according to the recent research. This means it is only just behind the Yorkshire Building Society, at £6.6 billion. It also means parents lend more than Clydesdale Bank.

Just over a quarter of property transactions are now helped by cash injections from parents. Of these transactions, around 70% involve those aged under 30, and most will go to help with a deposit. Only 4% of cash injections are used to help meet monthly mortgage payments.

Nearly 300,000 deposits funded by parents

“This research shows how important cash injections from parents are for some young people looking to get their foot on the first rung of the housing ladder,” said Darren Pescod, managing director of The Mortgage Broker Ltd. “But while some young people have the luxury of access to the Bank of Mum and Dad, this doesn’t apply to everyone. Some people do not have this access, for one reason or another, and this is likely to make it even more difficult for them to get a property of their own.”

Indeed, first-time buyers are now much older than their predecessors when buying their first property. Late last year, the average age of a first-time buyer in the UK was around 30 years old. There are stark contrasts between areas though, with those in the south-east of England waiting for a further seven years when compared to those in other areas further north. Buyers in some parts of London must wait until they are around 34 to own their first property, while those in Carlisle should be able to buy around the age of 27.

Finding the right mortgage lender

Clearly, shopping around for a good deal could make all the difference to whether you can get a mortgage or not. However, those who are struggling and who can turn to the Bank of Mum and Dad for help, are likely to keep this ‘bank’ in the top ten for many months (and possibly years) to come.

The gap between house prices, deposit amounts, and affordability will continue to provide challenges for those looking to get onto the housing ladder for the first time. With rents eating into potential savings, it’s no wonder people are hoping their parents can help.

For further information on mortgages, please contact Darren Pescod on, or visit

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