Independent Financial Life Planners Bishop's Stortford: The Bank of Mum and Dad

Thursday, 19 May 2016

The Bank of Mum and Dad

Enable’s IFA’s in Bishops Stortford regularly find themselves helping Mum and Dad find a way of financially supporting their young people to be able to buy their own home. If you’re a parent of children in their 20’s and 30’s then the current housing pressures will come as little surprise. The current situation has gone so far that recently according to research by Legal & General and the Centre for Economics and Business Research the ‘bank of mum and dad’ is now the equivalent of a one of the top ten mortgage lenders in the UK.

Parents helping their children to get on to the property ladder has reportedly become such a crucial part of the housing market that they will be involved in a quarter of all property transactions this year. With constantly rising house prices despite years and years without any real wage rises, a shortage of supply and tougher more heavily monitored mortgage regulations since the financial crisis have made it more and more difficult for first-time buyers to get on the ladder. Parents on average give their children around £17,500 to help them get a foot on the property ladder which when all added together adds up to a staggering £5 billion per year.

Louisa Fletcher, a property expert, told the BBC: ‘We’re looking at house prices in many areas back to post-crisis highs, and realistically I think that’s only going to continue, so I can only see the bank of mum and dad probably growing in stature as one of the biggest lenders.’

If you would like to find out the best way to help your children get onto the housing ladder then why not give our team of IFA’s a call today, as we are independent we can give you the best deals from across the market place.

Source: The Spectator

Issued by: Enable Independent Financial Life Planners •  25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339 Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority. It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us. NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

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IFA Bishop's Stortford

At Enable Independent we know that our clients trust us and rely on our advice to help them to plan a better, more secure financial future. This is a responsibility that we take very seriously especially because we know that many clients have chosen us on the recommendation of friends and family. Each one of our advisers has deep expertise in their area of specialist knowledge and, as a team, we hold some of the highest qualifications available in the financial advice industry.

Our job satisfaction comes from using our skills to find workable, affordable and flexible solutions to meet our clients needs. Whether we are planning for known future funding requirements such as house purchase, school fees or income in retirement - or for the unforeseen such as job loss, long-term illness or early death, our independence from any product provider enables us to view the marketplace impartially. Our training permits us to look beyond a product's marketing hype and select on the basis of its fitness for purpose.