Bank of Mum and Dad: 5 ways to lend a house deposit and maintain your standard of living

The BBC recently reported that the Bank of Mum and Dad lent £6.3bn in 2019, making it the 10th largest mortgage lender in the UK. But there are risks to lending large amounts. It can lead to parents downsizing, delaying retirement or eating into a pension income. This is Money suggests that parents are leaving themselves worse off – by £18,000 on average – to support their children, with almost one in five sacrificing their standard of living to help their children ...

For love or money: One fifth of Brits in a financially incompatible relationship

What makes a couple compatible? Factors such as shared hobbies and interests, complimentary personalities and trust are usually the first things to come to mind. What about money? Financial incompatibility may be one of the main reasons for the deterioration of relationships. According to research from Scottish Widows: A lack of shared goals has put a strain on 17% of relationships 17% wish they had discussed finances earlier in a relationship 20% think their partner could save more for the future 27% of people who don’t live together say ...

Should you use your pension to pay off your mortgage?

Close your eyes and imagine receiving a large amount of money. What do you see? What does it buy? The exact amount will dictate what is possible, of course. But, many would pay their mortgage off before dreaming of shiny new cars, skiing holidays, or for the more frugal, maybe a new… toaster? Whatever the money will be spent on, repaying your mortgage is often the first thing on people’s minds. And for good reason; those monthly mortgage payments are often the main reason people can’t give up work early (or at all, ...

Interest rate cut: Winners & Losers

win concept, think differentFollowing the decision by the Bank of England to cut base rate to 0.25%, whilst at the same time, offering additional financial support to banks and other lenders, we look at who are the main winners and losers after the change. Winners Some existing mortgage borrowers: If you have a tracker rate mortgage, which pegs the interest rate you pay to the Bank of England base rate, you will see a reduction in your mortgage payments. Around 20% of all mortgages are arranged on a tracker basis. If yours is ...