Personal gifting in a time of change
For years, first-time buyers have been turning to mum and dad for help with getting a foot on the property ladder. And, with high interest rates, stagnating wages and large deposits persisting, this year’s increase in family lending shouldn’t come as a surprise.
But the homebuying under 55s aren’t just turning to mum and dad for help anymore. Grandparents, aunts, uncles and friends are lending a hand financially too.
Giving has grown beyond the bank of mum and dad
In fact, 47% of all homes purchased by buyers under the age of 55, received help from family.
Most of those asked in our new ‘Bank of Family’ research said they would have to delay home purchase without help and 1 in 10 said that they would not be able to buy a home at all.
But we know that not everyone is lucky enough to have a family who can offer cash. That’s why Legal & General are investing in building new homes and supporting innovation in the market to address the inequality. We also have products that could help give your clients more options.
More families need your advice
Good financial advice is crucial. But only one in four families who gave support had financial advice beforehand. Your clients’ families might want to help, but they don’t have the know-how.
With Bank of Family lending expected to hit £10 billion by 2025, there’s a huge opportunity for you to guide more families through the process. That could be talking to them about equity release, either to boost their grandchild’s deposit or to help with living costs to improve their affordability assessment.
Whichever way your clients want to support their family, the opportunity is there for you to expertly guide them through their options. What’s more, we’re on hand to help.
How to have the right conversation
Talking to your clients is the first crucial step. You can find out if your clients can help or be helped by having the right tools to start the conversation.
Our Guide to Gifting is a great starting point. It’s full of ideas and examples of ways families can help their children or grandchildren buy their own home or support them financially with other life pursuits.
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