THE BANK OF MUM AND DAD - 
HELPING YOUR CLIENTS KNOW THE RULES

It's now quite common for young people, and particularly first time buyers, to receive a contribution from parents or other family members to help with a property purchase. The Bank of Mum and Dad is now one of the UK's biggest mortgage lenders but how does it really work?

BOMAD

As the Bank of Mum and Dad continues to play a pivotal role in helping first time buyers, it's essential that families know the rules for both their own financial protection and peace of mind.

We carried out some research with our members, in conjunction with the London School of Economics, to look at how families approach parental help when buying a property, and their experiences during this process. We have created these guides so that they can help families through every stage of the lending journey.

Preparation and planning

Our guides, which you can share with your clients, can help families best approach the often difficult conversation of financial assistance with their loved ones. 

How to run the Bank of Mum and Dad

BOMAD_How_to_run


So how does the Bank of Mum and Dad really work?
Our guide outlines important issues that parents and children need to consider for their own financial protection and peace of mind.

Download our guide

 

Bank of Mum and Dad
- A Conversation Guide

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For both parents and children, this guide highlights important questions and topics that should be considered when discussing financial support.


Download our guide

For more information on how the Bank of Mum and Dad really works please speak to your local BDM or our Mortgage Desk or visit our dedicated consumer webpage.

 

How clients can use family support to help buy a home

13 Jan 2022

It's official! Today's 30 year olds have it harder than their parents did, says the Telegraph (7 January 2022). Despite higher mortgage rates for mum and dad, greater property prices now wipe out any gains from today's lower rates, making a family's financial support even more key.

We have a range of mortgage options that support families to achieve their housing goals.

Joint Mortgage Sole Owner

Our JMSO arrangement allows families (parents and adult children only) to help each other with affordability when applying for a mortgage. 

Up to two family applicants can support one or two borrower(s) by using up to four incomes for affordability. Supporting family applicants will be listed on the mortgage but will not own the property.

  • Suitable for:

    • young borrowers needing help onto the property ladder

    • adult children wanting to support their parents, and

    • recently separated or divorced applicants in need of temporary help with their mortgage.

  • We also lend in retirement with higher maximum ages than most lenders.

Family Mortgage

Our Family Mortgages gives families the flexibility to combine their wider assets as security to help the borrower benefit from a competitive rate when faced with a 95% mortgage. Families can do one or a combination of the following; 

  • Use family savings as security: in our Family Security account, savings earn interest as well as providing security 
     
  • Secure a charge over property: use family property as security
     
  • Open a Family Offset account: use savings as security to reduce the amount of the mortgage on which interest is charged
     
  • Benefit from six months unemployment cover: at no extra cost (subject to conditions).

At Family Building Society, we have a common sense approach and assess each application on it's own merit so that we can fit to your client's particular circumstances.

Find out more about our Family Assistance Range

Semi-exclusive products

Did you know that on top of our standard range of products we have additional semi-exclusive products available via our packaging partners? Speak to your local Business Development Manager for more information.

Find Your Local

Business Development Manager

Your Local BDM:

Arif Kara

Arif was previously a mortgage adviser, and focuses on North and West London. Contact Arif for help with your clients' mortgages.
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Your Local BDM:

Michelle Parry-Bunter

Michelle has worked for the Society for over a decade and focuses on the South Coast. Contact Michelle for help with your clients' mortgages.
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Your Local BDM:

Nathan Waller

Nathan, previously a mortgage broker, focuses on Cambridgeshire, East Sussex, Essex, Suffolk, Hertfordshire, Bedfordshire, Lincolnshire, Norfolk and Kent. Contact Nathan for help with your clients' mortgages.
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Your Local BDM:

Grace Bennett

Grace focuses around the West M25 area. Contact Grace for help with your clients' mortgages.
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Your Local BDM:

Darren Deacon

Darren has over 28 years' Financial Services experience and focuses on both the East & West Midlands as well as the Southwest. Contact Darren for help with your clients' mortgages.
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Your Local BDM:

Paul Roberts

Paul has over 30 years' experience and focuses on the North (inc. M62 corridor), Yorkshire & North East. Contact Paul for help with your clients' mortgages.
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We do not currently have a BDM covering your area. Please contact our Mortgage Helpdesk:

Opening hours: Mon - Fri: 8am - 5.30pm, Sat: 9am - noon

We may record any telephone calls we have with you in the interest of staff training, monitoring customer service or for security purposes.

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