If you’re hoping to get on the property ladder with a little help from your parents’, or if you’re hoping to help your child take their first step, you are definitely going to need to talk about it.
But talking about money is never easy. Perhaps it’s no surprise, then, that while ‘Bank of Mum & Dad’ is playing an increasingly important role for many first-time buyers, with 35%* having received financial support to help them purchase their first home, a recent study found that only 15% have a formal agreement in place about the terms of gift or loan.**
Post Office Money research also revealed that the average parental loan to millennial buyers is £24,347 and yet, despite this sizeable sum, only one in five families surveyed have agreed a regular repayment plan.
And so, working with The Money Charity*** we have created a ‘Bank of Mum & Dad’ Conversation Guide to help parents and their adult children navigate what may be a pretty heavy conversation. The guide will offers practical tips on how to approach the conversation and a step by step journey through all the important things to you will need to discuss and explore when giving or receiving a gift or a loan.