The Popularity of Gifted Deposits

All About Gifted Deposits and Their Benefits

Nowadays we find that more parents are gifting deposit than ever before. Realistically, if the “Bank of Mum & Dad” was a physical bank as opposed to a given term, they would likely be within the top 10 biggest lenders in the United Kingdom.

We’ve seen some parents now gifting amounts upwards of £24,000. Sometimes these can come other family members, such as grandparents. Instead of passing on their savings to their children, they may opt to skip a generation and give it to you instead.

Family Assistance to Get a Mortgage

Thousands become reliant on a family member every year, hoping they can help them onto the property ladder (or upgrade to a home that is larger). In truth if gifted deposits were not allowed, the mortgage market would be in a bad way. Luckily, I don’t think we’ve seen the last of them just yet.

When speaking to some customers, we find that they’ve done the same for their children because they felt a sense of personal responsibility to help out that of which they gave life too. Over the years, property prices have gone beyond the average wage, leaving many unable to save for the deposit on their first home. This becomes especially apparent if there is only one income supporting the household.

Escaping The Rental Cycle & Getting a Mortgage in Hull

Whilst renting may seem useful in the short term, in the long run it can harm any chance people have to save for a mortgage deposit. Some even go as far as moving back in with their parents to help save up the necessary costs.

Parental generosity could harm their living standards in retirement too, the survey showed. Surveying 1600 parents who had helped their children out, many went on record as saying they had used their own savings to do so. Another concern is that some said they had been withdrawing from their own pension schemes or equity in order to gift a deposit. Essentially, this is them putting forward any inheritance their child would receive.

For more First-Time Buyer Mortgage Advice in Hull, please Get in Touch.

First-Time Buyer Mortgage Advice in Hull


Malcolm's
mortgage guides









What Does Remortgage in Hull Mean?

Taking a balanced look at what remortgage means, what defines a remortgage in Hull & the reasons that people may look to remortgage in Hull.









Do You Need a Deposit to Remortgage in Hull?

A look at whether or not you need a deposit if you are looking to take out a remortgage in Hull on your property and what to consider.









What Does a Mortgage Broker in Hull Do?

A mortgage broker in Hull will arrange and negotiate on a customers behalf, but what else does a mortgage broker in Hull do?









How to Get a Mortgage in Hull if You’re Over 40

Yes, you can get a mortgage over 40, subject to passing a lender's credit scoring and affordability calculation. Find out if you qualify...

Hullmoneyman.com & Hullmoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.

Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk

The information contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK.
Should you have cause to complain and you are not satisfied with our response to your complaint, you may be able to refer it
to the Financial Ombudsman Service, which can be contacted as follows

The Financial Ombudsman Service, Exchange Tower, London, E14 9SR
www.financial-ombudsman.org.uk

© 2023 Hullmoneyman

Hullmoneyman, 410 Wincolmlee, Hull, HU2 0QL.

Moneyman Logo







Moneyman Logo




Moneyman Logo

Ask Your Question





    Moneyman Logo

    Moneyman Logo







    Moneyman Logo

    Book your Free Consultation

    7 Days 8am - 10pm

    Moneyman Logo

    Moneyman Logo