Being the ‘Bank of Mum and Dad’




It’s never easy to climb that first step onto the property ladder. Year after year of increasing housing prices has caused the average home deposit to rise around 17%¹ and the average age of first time buyers to 36 years old².


It’s no surprise then that increasingly we are seeing ‘the Bank of Mum and Dad’ come to the rescue in order for their children to own their home. Many parents in the UK are resorting to giving their adult children a ‘leg-up’ onto the property ladder by gifting loaned deposits.



The Theory of Buying Later


As the first time buyer age steadily increases, a theory is formed on the possible effects for future generations:




A Lifetime Mortgage presents an opportunity to break this cycle. In some cases, parents are looking to the equity stored within their property to achieve this, as in all likelihood their home has increased in value recently.


In fact, there are modern financial tools which have been designed specifically to enable homeowners aged 55 and over to access the equity that has built up in their property. Known as Lifetime Mortgages, a portion of the value of a home can be unlocked tax-free to spend as needed.


Speak to us to find out if you could release equity for the purpose of gifting or loaning a deposit, or for any other reasons you may have.


Be aware that taking out a Lifetime Mortgage may affect your entitlement to State Benefits, and will inevitably leave less value in your estate later as an inheritance.





¹ – Which?, 2015

² – Property Wire, 2014






Equity Release Articles

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  • House Price Increase; Great News for Lifetime Mortgagers, Bad News for First Time Buyer
  • How Do I Release Equity From My Home?
  • How does Equity Release work?
  • How much equity can I release?
  • The Responsible Equity Release Jargon Buster
  • What are the Pros and Cons of Equity Release?
  • What is a Lifetime Mortgage?
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    Responsible Equity Release is a trading style of Responsible Life Limited. Responsible Life Limited is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register ( under reference 610205.

    This is a Lifetime mortgage which may reduce the value of your estate and may affect your entitlement to state benefits. To understand the features and risks ask for a personalised illustration.

    Any information contained herein is a personal opinion of the author and should not be considered to be advice of any kind. Inheritance Tax planning is not regulated by the FCA. Think carefully before securing other debts against your home. By consolidating your debts into a mortgage you may be required to pay more over the entire term than you would with your existing debt.

    Only if you choose to proceed and your case completes will Responsible Life Limited charge an advice fee, currently not exceeding £1,490. Our adviser will talk through the setting up costs of a lifetime mortgage before you make any decision to proceed.