BoMaD now a top 10 UK Mortgage Lender

14th October 2019

According to a recent report from Legal & General, the Bank of Mum and Dad (or BoMaD as it's affectionately known) is now the equivalent of a top 10 mortgage lender. Gifting a staggering £6.3bn in 2019 would put it firmly in the top 10 lenders if it were a financial institution.

The report also states that nearly a fifth of people over 55 are gifting money because they feel responsible for their family members.

The funds are coming from a number of sources such as cash or lump sums from their pensions, but many choose to release equity from their existing property.

John Lineham, Managing Director of Beresfords mortgage business Flagstone, commented, "It's not unusual for people to take advantage of low interest rates and remortgage their properties. For us, remortgages are running at a record high, accounting for 58% of our business at present."

Consistently low mortgage rates make remortgaging attractive for all sorts of reasons, especially for large capital projects such as extending a home, according to John.

"But it's also a cheap form of finance if you want to help your family onto the housing ladder. We have one client who has helped all three of her children with deposits on their first properties." John added.

To make sure you aren't paying too much for your mortgage, especially if you have a mortgage product coming to an end and want to make sure that what your current lender is offering is competitive, it's wise to seek advice from an independent mortgage adviser who can search the whole market for you. Contact Flagstone here for a no-obligation wealth check on your mortgage.