Using Bank of Mum & Dad to get on the property ladder? Time to talk!

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.

Get your free copy of our Bank of Mum and Dad conversation guide

*Post Office Money ‘Intergenerational Finances’ research. Opinium conducted a survey amongst 1,009 millennials and 1,021 of their parents between the 5 and 10 of October 2017.

** Post Office Money Family Financial Arrangements research. Opinium Research carried out an online survey of 511 homeowners who received a gift from their parents or partner's parents toward their deposit; 510 homeowners who received a loan from their parents or partner's parents towards their deposit; 113 parents who provided their child or their child's partner with a loan for their deposit and 509 parents who provided their child or their child's partner with a gift for their deposit from 21 January to 01 February 2018

***The Money Charity is a national financial capability charity providing financial education, information and advice to young people & adults throughout the UK.

This Guide does not contain any personal recommendation or advice as to the advisability or otherwise of taking out any mortgage or other financial product. To discuss your needs, you should speak to an appropriately authorised financial adviser or consumer advice centre such as The Money Charity