Best Financial Advisors in Malvern

The Bank of Family (Bof F) is impossible to ignore: According to research by Legal & General, support from parents, grandparents, and other family members has reached record levels in 2023, helping 318,400 property purchases with an astonishing £8.1 billion worth of lending. This means a staggering 47% of all homes purchased by buyers under the age of 55 were bought with family support.The UK housing market is increasingly divided between those helped with their purchase by generous family members and those for whom home ownership remains an almost unattainable dream. Few manage on their own. If the B of F was a regular bank, that would make it the ninth biggest lender in the UK. The property bought this year with help from family will have an estimated value of £124.6 billion. Amid a cost-of-living crisis, families have ramped up their support, helping more buyers than ever. Inflation, increasing interest rates, and previously Covid-19, mean that that B of F is even more essential. In most cases, B of F help goes towards deposits: more than three-quarters (77%) put at least some of it towards the deposit and over half (54%) all of it. In total, this means 68% of the total value of B of F support goes towards deposits – that’s roughly £5.6 billion. Most of the rest goes on other transaction-related costs, such as legal, mortgage and surveyor fees, moving expenses and renovations. Fewer than one in ten (8%) use the money to help with mortgage repayments.