Bank of Mum and Dad is back to bridge deposit gap
Record low interest rates and government incentives are boosting interest from first home buyers, despite a weakening economy.
The Bank of Mum and Dad is making a comeback as record-low lending rates, generous government incentives for first-time buyers and less competition from investors raises the pressure on parents to help family into their own home, according to lenders and advisers.
Parental lending to children peaked after last year’s May election but has since plunged from about 12,000 loans a month to just over 1200, according to Digital Finance Analytics (DFA), which monitors loan markets.
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