Notices

  • Our Windfall Bond is available for new account openings, offering interest at the Bank of England Bank Rate and entry into a monthly free prize draw with more prizes available now determined by the prize fund value. Find out more here

    Newly opened accounts need to be fully funded and nominated bank details registered before the end of September in order to qualify for entry into the November Prize Draw.

  • Savings: Interest rates for Windfall Bond and Tracker Savings Bond will decrease by 0.25% from 1 September 2024. We will be writing to all customers individually to confirm the new rates.

    Mortgages: Tracker mortgages will change on 25 September 2024 and we will write to customers individually with revised payment details where the new rate exceeds the minimum rate (or ‘floor’) already applying to their mortgage.

    (Notice updated 05/08)

  • From Thursday 22 August, we reduced our rates on all our fixed rate mortgage products.

    From 19 September 2024, we'll also be reducing our Managed Mortgage Rates (MMR) by 0.25%. All on-sale discounted variable product rates and other details, including representative examples displayed on our website, have been updated to reflect these lower rates. We will be writing to existing customers who have been impacted by this change, shortly, with details relevant to them. Find out full details here.

  • Online Service update. Due to planned essential maintenance, our Online Service will be unavailable from 10pm on Thursday 12 September until 2am on Friday 13 September. We apologise for any inconvenience this may cause.

Time to sit for your BoMaD exams

Even if you didn’t have the extreme misfortune to have booked a late summer holiday with Thomas Cook, you will no doubt still be wincing slightly at the forgotten credit card bills from foreign restaurants, cafes and adventures.

All happy times no doubt but now the serious business of life itself must resume, especially for those who are co-directors, like you, of the Bank of Mum and Dad, or BoMaD as it has become known.

Once again, the Bank of Mum and Dad reaches into their threadbare pockets to send their little dears out from the nest to equip for the big wide world.

This is fine, of course - it’s what being a parent is all about. Except that, as we know from our research, it doesn’t stop there and just because your fledglings have long left behind the need for a Power Rangers pencil case doesn’t mean they don’t need your help, and money.

Because they need to buy a home.

It has been widely reported, not least by us, that the Bank of Mum and Dad now funds their offspring for property transactions to such a significant level that BoMaD would by itself be a top-ten UK lender.

Our question is… do you really know how to be a lender? What are the rules?

So you’ll be pleased to know we have created a series of guides for you on how to run a branch of BoMaD including our brand new guide on the financial implications.

For example, what is best when considering how to fund your children’s house purchase?

Our guide answers and gives expert guidance on key questions like these:

  • Gift or loan?
  • What could be the impact of Inheritance Tax?
  • Can you avoid it altogether?
  • Are there any taxes which may have an impact?
  • Sole or joint mortgage?
  • How and when should you act as a guarantor?
  • Can a child’s partner acquire an interest in the home despite making little or no financial contribution?
  • What are the important questions to ask yourself and your children?
  • How about insurance?

There’s just a few exam questions for you to consider. So, you see, you might need to do a bit of swotting up.

Download our guide here

Written by Steve McDowell

 

The content of this blog is Steve McDowell’s personal opinion and comment, and views expressed here are his and unless specifically stated, are not those of Family Building Society. The content on this page is not intended to be advice in any circumstances.

Sources:

https://legalandgeneralgroup.com/newsroom/our-research/bank-of-mum-and-dad-report-2019