Jump to content
House Price Crash Forum
Sign in to follow this  
Grayphil

Bank Of Mum N Dad Must Be Close To Running Out

Recommended Posts

Ok ive got no facts at all, but I just started to think that the UK bank of mum & dad must be running out...

The only thinking ive got for this is as follows, Im 29,I personally couldnt use bank of Mum N dad, as they over extended and bought a huge 7 bedroom house interest only mortgage,

But I also have lots of friends whose parents/grandparents helped them with their deposit, this was around 2007 when the Media was pumping out its biggest amount of HPI and if you dont buy now etc etc.....

It might only be around me, but nobody I know is eligable for help from their parents, IMO the ones who could help did, I think the rest are unwilling to help now as they are actually scared about HPC, mabye they MEW 'ed too much and now reality is just starting to sink in.

So was just wondering if any body felt the same as this, or more to the point would any sane parent now MEW or remortgage 40000 ISH for their children to get on the ladder knowing full well what is currently happening with the property market?????

Share this post


Link to post
Share on other sites

The only thinking ive got for this is as follows, Im 29,I personally couldnt use bank of Mum N dad, as they over extended and bought a huge 7 bedroom house interest only mortgage,

blimey - why 7 bedrooms??????

Share this post


Link to post
Share on other sites

The Bank of Mum and Dad has a way to go yet. But if prices start clearly falling on a long term basis, BoMD may be more reluctant to lend and lose their money.

No, who am I kidding - BoMD is a bottomless pit.

Share this post


Link to post
Share on other sites

Ok ive got no facts at all, but I just started to think that the UK bank of mum & dad must be running out...

The only thinking ive got for this is as follows, Im 29,I personally couldnt use bank of Mum N dad, as they over extended and bought a huge 7 bedroom house interest only mortgage,

But I also have lots of friends whose parents/grandparents helped them with their deposit, this was around 2007 when the Media was pumping out its biggest amount of HPI and if you dont buy now etc etc.....

It might only be around me, but nobody I know is eligable for help from their parents, IMO the ones who could help did, I think the rest are unwilling to help now as they are actually scared about HPC, mabye they MEW 'ed too much and now reality is just starting to sink in.

So was just wondering if any body felt the same as this, or more to the point would any sane parent now MEW or remortgage 40000 ISH for their children to get on the ladder knowing full well what is currently happening with the property market?????

Tell me what is happening with the property market?

I dont think there would have been that many parents willing to draw down money on the value of their home to pay for a deposit in the first place. Perhaps cash savings?

But, for most people the news about property is more often that not positive, the budget was no real surprise and interest rates are coming down. So provided Mr & Mrs parent dont read this site, I think you'll probably find most people thinking that prices are heading north again

Share this post


Link to post
Share on other sites

My thought exactly.

Are they running a small B&B?

Or do like running those parties involving a fruit bowl and car keys?

That's quite a big B&B, but yeah, I might have had the OP's mum...

Share this post


Link to post
Share on other sites

Tell me what is happening with the property market?

I dont think there would have been that many parents willing to draw down money on the value of their home to pay for a deposit in the first place. Perhaps cash savings?

But, for most people the news about property is more often that not positive, the budget was no real surprise and interest rates are coming down. So provided Mr & Mrs parent dont read this site, I think you'll probably find most people thinking that prices are heading north again

Well yeah, im pretty sure, although not much evidence, that every single person in the whole country, regardless of whether they read this site or not is aware we have had a small property crash, most people are aware there house isnt worth quite what they were hoping for, and most people must be aware that credit is very difficult for anybody to get

Share this post


Link to post
Share on other sites

Ok ive got no facts at all, but I just started to think that the UK bank of mum & dad must be running out...

The only thinking ive got for this is as follows, Im 29,I personally couldnt use bank of Mum N dad, as they over extended and bought a huge 7 bedroom house interest only mortgage,

But I also have lots of friends whose parents/grandparents helped them with their deposit, this was around 2007 when the Media was pumping out its biggest amount of HPI and if you dont buy now etc etc.....

It might only be around me, but nobody I know is eligable for help from their parents, IMO the ones who could help did, I think the rest are unwilling to help now as they are actually scared about HPC, mabye they MEW 'ed too much and now reality is just starting to sink in.

So was just wondering if any body felt the same as this, or more to the point would any sane parent now MEW or remortgage 40000 ISH for their children to get on the ladder knowing full well what is currently happening with the property market?????

The balance sheet of the bank of mum and dad intrigues me as well. Sadly not being registered officially the bank is not obliged to keep accurate records, file accounts or put any restrictions on claims made about its operations on its behalf by media pundits. The two main sources of the BoM&D's loans appear to be savings and loans made against its assets. I suspect that the BoM&D's UK operations with cash might be limited by the low savings culture in the UK. The bank also carries a disproportionate portfolio of property assets so borrowings from other banks against these assets to provide money for its own operations might be increasingly restricted in a situation where these banks' ltv ratios are restricting the size of its borrowing.

It is not clear what charges are made for the loans made by the BoM&D. Rumours suggest that they are made at 0% interest and are sometimes written off altogether.

On the basis of this (admittedly limited) information I would suggest that the long term viability of the BoM&D in the present economic climate is severely limited. B)

Share this post


Link to post
Share on other sites

Perhaps they should combine the B&B with swinging parties to get people in? tongue.giflaugh.gif

Have you ever been to a swinging party??

Im guessing no...

dont be shy, give it a go!! you would have fun and its easier to get involved in the whole scene that you would probably think!! you probably would need a girlfriend which may be a problem for you, but you can hire girls for less that 200 GBP per night

Share this post


Link to post
Share on other sites

Have you ever been to a swinging party??

Im guessing no...

dont be shy, give it a go!! you would have fun and its easier to get involved in the whole scene that you would probably think!! you probably would need a girlfriend which may be a problem for you, but you can hire girls for less that 200 GBP per night

sounds good advice, i would give it a go if i were you

Share this post


Link to post
Share on other sites

The balance sheet of the bank of mum and dad intrigues me as well. Sadly not being registered officially the bank is not obliged to keep accurate records, file accounts or put any restrictions on claims made about its operations on its behalf by media pundits. The two main sources of the BoM&D's loans appear to be savings and loans made against its assets. I suspect that the BoM&D's UK operations with cash might be limited by the low savings culture in the UK. The bank also carries a disproportionate portfolio of property assets so borrowings from other banks against these assets to provide money for its own operations might be increasingly restricted in a situation where these banks' ltv ratios are restricting the size of its borrowing.

It is not clear what charges are made for the loans made by the BoM&D. Rumours suggest that they are made at 0% interest and are sometimes written off altogether.

On the basis of this (admittedly limited) information I would suggest that the long term viability of the BoM&D in the present economic climate is severely limited. cool.gif

Yeah, im guessing all loans would be charged at no interest, and as for paying back im not too sure, I guess it would depend on how many children were in the family, If it was just one child mabye the debt would be written off and given mabye as a very generous wedding present or something,

However if more that one child then I guess the loan would have to be paid back in order to prevent fighting in between the siblings about unfairness etc... but Im just guessing

Share this post


Link to post
Share on other sites

I agree with OP. Every source of money used to prop up a bubble will be, in the end, finite. So the bubble will only be supported for so long. Hence printy-printy,loans, taxpayers' subsidy, and what have you, will never keep the bubble going for ever. It must falter, and then eventually deflate.

I reckon the BoMaD is probably nearing its depletion, and HPI must run out of steam. There might not be a HPC exactly, but HPI will not get above its 2007 peak, imo.

Share this post


Link to post
Share on other sites

I don't imagine the majority of parents have large cash sums sitting around in bank accounts.

I expect the money is either MEWed or left by grand parents. The former is probably not so forthcoming now as people are probably slightly more wary of taking on extra debt.

The latter, perversely, is probably more abundant.. as demographics change there will be more old people passing away and leaving larger valued assets (houses) in their wills.

A lot of families would probably give 25% to the kids for a deposit on a house, 50% to pay off their mortgage, 25% to blow on some pleasure cruise in the med.

The flip side is that with pensioners living longer and care being expensive, more are probably selling their assets (or having them sold from under them) to pay for their retirement/care homes.

Share this post


Link to post
Share on other sites

Well yeah, im pretty sure, although not much evidence, that every single person in the whole country, regardless of whether they read this site or not is aware we have had a small property crash, most people are aware there house isnt worth quite what they were hoping for, and most people must be aware that credit is very difficult for anybody to get

Two key points there, we have had a correction and therefore to most peoples minds property is lower in value, and therefore could be conceived as better value.

Credit is difficult, but if you have got a deposit, then you can get finance.

I agree with your sentiment, but the above is what I am seeing happening.

For most parents, the money lent to their kids is better use than leaving it in a bank.

Share this post


Link to post
Share on other sites

The balance sheet of the bank of mum and dad intrigues me as well. Sadly not being registered officially the bank is not obliged to keep accurate records, file accounts or put any restrictions on claims made about its operations on its behalf by media pundits. The two main sources of the BoM&D's loans appear to be savings and loans made against its assets. I suspect that the BoM&D's UK operations with cash might be limited by the low savings culture in the UK. The bank also carries a disproportionate portfolio of property assets so borrowings from other banks against these assets to provide money for its own operations might be increasingly restricted in a situation where these banks' ltv ratios are restricting the size of its borrowing.

It is not clear what charges are made for the loans made by the BoM&D. Rumours suggest that they are made at 0% interest and are sometimes written off altogether.

On the basis of this (admittedly limited) information I would suggest that the long term viability of the BoM&D in the present economic climate is severely limited. B)

Yet we are saving more, perhaps suggesting the bank of MOD is funding through saving or FTB are saving the deposits they need

Source here

Share this post


Link to post
Share on other sites

Has anyone seen the pics of the Glastonbury festival?

The middle classes are having a whale of a time

Glastobury is full of all sorts, it hardly middle class!

Share this post


Link to post
Share on other sites

Glastobury is full of all sorts, it hardly middle class!

so who are these "allsorts" that can afford 500 notes for a weekend in a field to watch gorillaz and dizzee rascal?

Share this post


Link to post
Share on other sites

so who are these "allsorts" that can afford 500 notes for a weekend in a field to watch gorillaz and dizzee rascal?

Umm its called saving your money to have a good time.

Share this post


Link to post
Share on other sites

not using your student loan money then asking m&d for more?

who knows, there could be a number of variations to the equation. The point is, people are there and they are having a good time.

Good on them

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 140 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.