14th September 2018
Bank of Mum and Dad Needs Help!
One in 4 housing transactions involve the Bank of Mum and Dad
Recent surveys show that a quarter of housing transactions now involve borrowing from the ironically titled Bank of Mum and Dad. Mum and Dad are becoming increasingly concerned that they don’t have the knowledge to make the correct financial decisions at this important time. Over three quarters of all parents aged 55 and over find gifting rules complicated, and are concerned about making mistakes.
Not enough knowledge?
A further 24% of parents in this situation worry that they don’t have enough knowledge to provide the right financial decisions in these circumstances. Not just for their children but for themselves too. When asked, 40% of parents aged over 55 believe there needs to be online guidance to provide more support to help the Bank of Mum and Dad. A whopping 78% of over-55s in this position would welcome tax incentives for gifting to children.
Younger generation worry too!
It’s not just the parents who worry. The younger generation are beginning to show concerns about using the Bank of Mum and Dad. Nearly half (46%) of 18 to 40-year-olds living in rented accommodation worry that their parents don’t have sufficient financial knowledge to make the right decisions for themselves and their offspring. They have very real concerns about a lack of support to help their parents get it right.
As recourse to parental help becomes more the norm, it is clear that some general information and support needs to be available to parents considering this option. Whether this is online, or via brokers and solicitors.
Legal advice for the Bank of Mum and Dad
Legal advice is essential if, as a parent, you are considering a gift. However, parents often find themselves worrying – understandably – about the cost. Here at The Finance Roome we are finding more and more mortgages are being supported by Bank of Mum and Dad hence we are primed to be able to help provide essential financial advice for you and your family. If you are in this situation and you aren’t sure how to proceed please do give us a call. We can help. If we can’t we are sure to be able to recommend somebody who can. Email your questions to us at firstname.lastname@example.org and we will do our best to explain your options to you.