Mortgages  

Bank of Mum and Dad feels strain of own generosity

Acknowledging that most people are living longer, healthier lives, the authors of the report point out this also means that retirement funding sources need to work harder and last longer. They speculate that in future Bomad lenders could be more constrained in what they’re able to contribute.

L&G says that reliance on Bomad to keep the housing market moving creates a division between the haves and have-nots. Nevertheless, it acknowledges that if the supply/demand imbalance in the housing market is not addressed, Bomad will remain a necessary part of the market. 

The report concludes that the lesson for such parents is to make the best use of their resources, and protect their own interests as well as those they are trying to help.