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Story for The Times: The Bank of Mum and Dad helping with rising mortgage repayments

Journalist: George Nixon, The Times and The Sunday Times

ended 16. June 2023

Good afternoon,

For The Times we're working on a story about rising mortgage costs and a new spin on it, which is whether the Bank of Mum and Dad is stepping in to help with their children's much higher mortgage repayments. 

They helped them onto the ladder, now they're helping them stay on it - that kind of thing. Have you seen any clients, either the Son/Daughter or Mum/Dad, in this situation who might be happy to chat about it, please?

Thanks!

3 responses from the Newspage community

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Jamie ElvinVerified
Director at Strive Mortgages
As well as helping their children with a deposit, parents can support their children's borrowing capacity through various methods including joint mortgages or acting as guarantors. However, due to their increased age and lending restrictions, parents often face shorter loan terms, which can lead to higher monthly payments for their children. Apart from contributing directly to mortgage payments or increasing their deposit, there are unfortunaltey limited options for parents to help reduce mortgage payments.
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Daniel WiltshireVerified
Actuary & IFA at Wiltshire Wealth
Over the past year, I've definitely seen more instances of The Bank of Mum and Dad (A.K.A The Lender of Last Resort) stepping in to bail out their children. It can be a bit of a thorny issue - there's a lot of emotional baggage that comes with money and family. But with rates at 5%+ (and rising), for many, it may seem as though there is no alternative.
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Chris Sykes0
Technical Director and Senior Mortgage Adviser at Private Finance
My clients would definitely want to stay private / not talk to the press. But I have recently had a few examples where clients parents helped towards a deposit, sometimes they have also helped a client by being guarantors on their mortgage, sometimes used their background wealth to help mortgage on an an interest only basis to help with payments (so increases are felt more), and recently when it comes time to remortgage completely pay off the mortgage as the payments would have dramatically increased.
I have seen completely paying off the mortgage and i have seen making other significant payments towards the mortgage to pay it down to a more comfortable level

There are obviously only a very small subset of people (generally the high net worth) physically able to do this.