It's Free to Speak to an Advisor, 7 days, 8am - 10pm

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.

Subscribe

Subscribe to our monthly newsletter for the latest updates on the mortgage market.

Please wait...

Thank you! Now you'll be kept in the loop with the latest market updates!

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. If you are a first time buyer in Hull, book a free mortgage appointment to speak with a mortgage advisor in Hull.

Date Last Edited: 09/29/2023

Related Guides

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

Equity Release Council Logo Solla Later Life Logo
Facebook Image X Image Instagram Image YouTube Image LinkedIn Image SpotifyImage TikTok Image

Speak to an Advisor – It’s Free!
7 Days a Week, 8am – 10pm

Speak to an Advisor - It's free Enquire Online 01482 772986
We use cookies to enhance your customer experience. More detailsGot It