For many first-time buyers, getting onto the property ladder feels harder than ever. Rising house prices, higher interest rates and the difficulty of saving for a deposit while paying rent mean that homeownership can seem out of reach. As a result more buyers are turning to the “Bank of Mum and Dad” financial help from parents or family members that makes buying a home possible.
Saving for a deposit is often the biggest challenge. Most lenders require between 5 and 10 per cent of the property value upfront, which can take years to achieve without support. Family assistance can dramatically reduce this timescale, improve affordability, unlock better mortgage rates and strengthen a buyer’s position in competitive property markets.
The most common form of help is a gifted deposit, where family members contribute money with no expectation of repayment. Mortgage lenders usually require written confirmation that the funds are a genuine gift and not a loan, along with evidence of the source of funds. Other options include family loans, guarantor mortgages and joint borrower, sole proprietor mortgages, all of which can increase borrowing power but must be carefully structured.
While these options can make homeownership more achievable, they also come with important responsibilities. Clear communication is essential so that expectations around repayment, ownership and future plans are fully understood by everyone involved. Legal and financial advice can help protect both buyers and their families and prevent problems later on.
Family support should be seen as a helping hand rather than a shortcut. It provides opportunity, not entitlement, and works best when combined with careful planning and professional guidance. When structured properly, the Bank of Mum and Dad can create security for families as well as opportunity for buyers.
For many people, this support is the difference between continuing to rent and owning a home of their own. By approaching family help responsibly and transparently, buyers can turn the dream of homeownership into a realistic and achievable goal, taking their first confident step onto the property ladder.
