The property market could greatly benefit from the latest referendum result, as parents evade other form of investments in order to help their kids get on the property ladder instead.
With the very recent Brexit result still resonating around whole London, the “Bank of Mum & Dad” is just one of the many groups which has already grabbed the currently available opportunities .
With the continuing subdued interest rates, a lot of people have observed a sudden increase in purchases by the “Bank of mum & dad” wanting to invest in the residential property market. For most parents, this particular option has the added appeal of helping their children take their first step unto the property ladder.
Moreover, low interest rates have greatly dropped mortgage costs, while bank deposits currently rates almost zero. That is why London’s property market is now a popular choice with the “Bank of Mum and Dad”.
Barclays has just announced that its launching a deposit-free mortgage, particularly with the “Bank of Mum & Dad” in mind. The parents of the buyer, or other generous benefactor, only needs to be able to put forward a “helper contribution” of 10% of the property purchase price. This will then be deposited to the bank and will be given back to the “helper” (plus interest) after three years, providing all repayments have been fulfilled.
Aside from all these opportunities, Brexit still caused a huge amount of doubt to many potential investors, thus, there will always be winners and losers.
However, the “Bank of Mum & Dad” could truly benefit more than most as they are investing for the long-term goal. For parents wanting a good home for their money and their children, they may find that investing in good properties or using capital to help their kids obtain their first home is a great option; particularly as interest rates are now at very low levels.