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.
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.