‘Bank of Mum and Dad’ continues lending – and spending

According to latest research, one in four parents plan to use their savings to help their children buy a first home. Around 23 per cent of parents say they already have £41,000 saved in order to provide financial assistance to all their children.

And 70 per cent of parents with children over the age of 18 believe now is the right time to get them onto the housing ladder.

As the number of first time buyers rises (accounting for 38 per cent of all house purchases for the second quarter of 2009), and parents are generally more than happy to use their savings for their children, they can now take advantage of a new incentive that offers financial benefits.

Recently launched by Stamford Homes, The Family Bond allows the new homes builder to pay Mum and Dad an unparalleled guaranteed interest rate on their savings if they use them as a deposit for their children to buy a Stamford home.

The scheme allows Mum and Dad to provide up to 25 per cent of the purchase price and then Stamford Homes pay back interest on that loan at the rate of 10.25 per cent for two years.

Stamford Homes sales director Steve Woomble said: “This is a fabulous scheme for parents who sincerely want to assist their children but who would lose the interest they would be receiving if they left their money in a savings account.

“Current research shows that parents are feeling the pressure to save for their children’s future – particularly as the number of first time buyers rises sharply.”

He added: “The family bond is a way of helping not only their son or daughter to gain a foothold on the property ladder, but give the parents a healthy return on their investment.

“The benefits to the purchaser are that they will have a larger deposit to put down on their new home, lower mortgage repayments and are safe in the knowledge that Mum and Dad will get a healthy return on their investment in helping them onto the property ladder.”

The scheme is subject to terms and conditions, but is available across all Stamford Homes Midlands developments.

For more details about the Family Bond and other Stamford Homes incentives, as well as new homes in the region, visit stamford-homes.co.uk.