The “bank of mum and dad” is older than you might think
Buying a home is one of the biggest financial decisions many people will ever make – so it’s perhaps not a big surprise that many taking this step are helped out financially by friends and family.
But the ING International Survey (IIS) on Homes and Mortgages reveals that the “bank of mum and dad” – as this assistance from family is sometimes known – may have actually been in place for generations. The IIS polled more than 15,000 people about where they live and how they pay for it. Of homeowner respondents aged under 24 in Europe, 69% had financial help from loved ones when they brought their home. Remarkably, the figure for over 55s was 31%, indicating friends and family have been an important part of the home buying process for generations.
Make saving regular
Although help from loved ones is not uncommon, more respondents say they did not get assistance when buying.
An effective way to build a house deposit can be to make a basic budget then set up automatic transfers regularly to build a deposit in a dedicated bank account. ING senior economist Ian Bright shares his seven rules for saving for a long-term goal in the video I can’t possibly save that much - with his first tip simply being “don’t delay”.
Homebuyers who do get help from loved ones with their deposit should remember to check if there are associated implications when applying for a mortgage.