While mortgage lenders vary from country to country, this particular lender is becoming increasingly common throughout the world.
1. The Facts Of Life In The UK
Image Credit: English Housing Survey
These statistics are becoming increasingly familiar. There are less first-time home buyers. Those that can buy a home do it at an older age and need some of financial help.
2.So, To Whom Are First-Time Homebuyers Turning?
This generation is turning to the “Bank of Mom and Dad” for help. In fact, the family now ranks as the #10 mortgage lender in the UK. (All currency amounts converted to US dollars.)
- UK parents will lend about $8,422,700,000
- Average first-time buyer will require a deposit of approximately $33,672.34
- Parents will be involved in 26% of all UK property transactions
- First-time buyers borrow an average of about $171,095.92
3.Knowing The Implications Are Crucial
Like any country, there are rules about money exchanging hands within a family. As far as UK mortgage lenders are concerned, the money must be in the form of a gift. If banks see a repayment schedule, the lending amount may be limited.