With “Bank of Mum and Dad” currently helping finance 25% of UK mortgages the latest change to the CML Lenders’ Handbook for four banks within LBG is particularly significant. Earlier this month the Guardian (excuse the pun) revealed that parents are set to lend their children £5bn to help them on to the property ladder. If the lending power of these parents was combined, it would be a top 10 mortgage provider. It is worth noting that the article reflects that parents are ‘lending’ rather than gifting. In many cases the loan is protected by way of a deed of trust. In the last few hours the likes of Lloyds and BOS have made their position a lot clearer via the CML Handbook by changing their answer to Question 5.13.1: “If different from 1.11, contact point if borrower is not providing balance of purchase price from funds/proposing to give second charge”. For many lenders the answer to the question simply sets out the contact details for the relevant department at the said le...
This blog is for CQS accredited firms in England and Wales. Including topics like the Conveyancing process, Conveyancing Policy Templates and Conveyancing case law. As it contains everything about conveyancing and conveyancers it should be of particular interest to property lawyers and property solicitors, as well as COLP and Compliance Managers.