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Bank of Mum and Dad forks out £8.8 bn

Gifts and loans from the Bank of Mum & Dad (BOMAD) totalled £8.8 billion in 2022, according to the latest analysis from property firm Savills.

This amount has increased by almost £4 billion since the start of the pandemic (2019), as a result of a more stringent mortgage market and higher deposit requirements.

In total, 170,000 first-time buyers had family assistance in getting their mortgage in 2022, accounting for around 46% of all mortgaged first-time buyers, down from a peak of 198,000 in 2021. However, this number is expected to jump to 61% in 2023, a figure not seen since before Help to Buy was introduced.


This means that just two in five first-time buyers are likely to access the market without any help.

Family support

“Whilst many homebuyers enjoyed record low-interest rates during much of 2020 and 2021, mortgage rates for high LTV mortgages, most commonly used by first-time buyers, increased, and so it was more necessary for those who were able to, to take advantage of family support to try to secure a deal at a lower rate,” said Frances McDonald, director of residential research at Savills.

“According to the latest Nationwide figures, house prices across the UK have risen 19% since the start of the pandemic – despite prices falling for six consecutive months to February– increasing the average house price to £257,000, creating a double whammy for first time buyers.

“Not only are they facing higher interest rates, many are also continuing to struggle to ensure their savings keep pace with rising average deposits, particularly as rents have also increased and inflation impacts the cost of living.”

Bank of Mum and Dad post Help to Buy

Higher mortgage rates and the end of Help to Buy are expected to increase lending from the Bank of Mum and Dad.

Savills has forecast that mortgaged first-time buyer transaction numbers will fall back to approximately 200,000 in 2022, -43% below the pre-pandemic norm. However, the proportion of first-time buyer purchases receiving support is expected to increase from 46% in 2022 to 61% in 2023 – with 3 in every 5 buyers expected to receive support.

The total contribution of gifts and loans is also expected to fall as a reflection of overall transaction numbers in 2023, but is still expected to total £26 billion over the next three years (2023-2025).


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