The Bank of Mum and Dad became the hot topic of conversation once again in the financial press this weekend, with the announcement of a new offering from a high street lender.
The scheme, in addition to their current range, allows a ‘helper’ to provide 10% of the property’s purchase price as security, while the First-Time Buyer does not need to provide a deposit themselves. After 3 years, if the mortgage payments have been maintained, the helper will get their money back plus interest. Experts in the Times and FT suggested that this option was particularly useful for parents who wanted to help their children onto the property ladder without handing over their savings.
For those looking at saving up a deposit without the help of the Bank of Mum and Dad, the Mail on Sunday looked at the benefits of the Help to Buy ISA, while the Sunday Telegraph discussed the Government’s Help to Buy Equity Loan scheme, as well as standard 95% Loan-to-Value deals.
What the papers said about the Bank of Mum and Dad