The Bank of Mum and Dad, explained

Last reviewed: 30 June 2026

The Bank of Mum and Dad is the nickname for family financial help that gets buyers, usually first-time buyers, onto the ladder, most often a parent or grandparent funding part of the deposit. Research from firms such as Savills and Legal and General has put total family support in the billions of pounds a year. There are three main routes: a gifted deposit, a JBSP mortgage, or a guarantor mortgage, each with different risk for the giver.

How big is it?

Family help is one of the largest sources of deposit money in the UK housing market. Published research, for example from Savills and from Legal and General, has estimated total family contributions to buyers at several billion pounds a year, which would rank it alongside a major mortgage lender by value. We attribute any such headline figure to its publisher rather than asserting our own number, because the estimates differ by source and update each year. Read the latest from the original research for a current figure.

The three ways to help

Help wisely

A gift ends the giver's risk once it is made; JBSP and guarantor arrangements create ongoing liability, so they deserve careful thought and usually independent legal advice. There can be tax angles too. For a plain walkthrough, see I want to help my child buy their first home.

Common questions

What is the Bank of Mum and Dad?

It is the informal name for family financial help that lets people, usually first-time buyers, get onto the property ladder, most often a parent or grandparent providing some or all of the deposit. It is one of the largest sources of deposit funding in the UK, which is why it has its own nickname.

How much does family give?

Research by firms such as Savills and Legal and General has put total family support to buyers in the billions of pounds a year, making it equivalent to a sizeable lender. We attribute any headline figure to its publisher rather than state our own, because estimates vary by source and year.

What are the ways to help?

Three main routes: a gifted deposit (give money towards the deposit), a JBSP mortgage (boost borrowing without owning the home), or a guarantor mortgage (back the loan with income or property). A gift is simplest and lowest-risk; JBSP and guarantor add liability for the supporter.

Are there tax implications?

There can be. Large gifts may have inheritance tax consequences for the giver depending on circumstances, and going onto the deeds can trigger a stamp duty surcharge. The mortgage side is straightforward, but it is worth the giver taking tax advice.

AP

Adam Parker

Founder, MortgageExplained, MortgageExplained

Adam spent nearly a decade as a mortgage adviser at Just Mortgages, with further experience in commercial finance. He is CeMAP and CF qualified. He built MortgageExplained to do one thing well: explain mortgages in plain English, then introduce you to a regulated broker when you are ready. Every page is written and reviewed by Adam.

Last reviewed: 30 June 2026

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