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Wednesday, May 03, 2017

The failure of the Finance Industry to assist Bank Mum and Dad

Parents are predicted to lend more than £6,500,000,000 this year to help their children get on the property ladder. This is a 30% increase on the 2016 figure and according to research from Legal & General means that parents will be involved in more than 25% of UK property transactions.

This gives lots more detail about Legal and General's research on the subject.

This story was in most of the UK media - here is the report from the Guardian. 

Way back in 2011 I was talking about the lack of financial products and cooperation between builders and finance companies that would assist parents and their children.

Looks to me that little has changed. I would have thought that the finance industry would be fighting to get new business from parents who are trying to help fund their children. I know there have been a few products released but considering the scale of the business opportunity it too little too late.

It was obvious that banks needed to consider the whole family unit, not only the individual components of the family, when creating products. Dick Stroud

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