Borrowers go mad for Bank of Mum and Dad
Getting on to the housing ladder is a big step to make. It’s perhaps more akin to a leap than a step when trying to save the funds for a deposit!
Mike Hodgetts, from Lighthouse Platinum Wealth Management, explains the context of the current housing market, with tips on how to raise the funds for a new home.
The average age of a first-time buyer in the UK is 30 and the average first time buyer deposit is currently over £33,000.
Research from Nottingham Building Society noted that 61% of first time buyers cut back on socialising, 8% postponed starting a family or getting married and 7% of people even sold their car to boost their savings for a deposit.
BOMAD (Bank of Mum and Dad) was involved in assisting over 298,000 people in housing transactions in 2017, with even higher numbers predicted for 2018.
It’s not just people trying to buy their first home that receive financial help when buying houses, this year 27% of all buyers will receive help from friends or family. These stats illustrate the ever increasing role that parents and grandparents alike play in helping younger family members in their quest for home ownership.
Could Equity Release help?
Yes, and it already does, 44,000 housing transactions this year involved funds provided by Equity Release and with the vast majority of the UK’s housing wealth tied up in the homes of the over 55’s, now could be the time to look at how Equity Release could help you and your family.
Do you have questions about Equity Release? Call Michael Hodgetts on 01473 730999 or visit the Lighthouse Platinum website to find out more
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