Mortgage lending is a constant hurdle for many home buyers to overcome, especially if they are purchasing a home as a first time buyer. Inflation is rising and wage growth has become quite stagnant across the country which is leading many to relying on the bank of Mum and Dad for a down payment. Funds originating from the bank of Mum and Dad are sizeable and it makes funds from parents now the 10^th largest source of financing anywhere.

Those in search of financing for a property purchase are running into many challenges. New affordability tests, coupled with growth in house prices for many years running, is making buying more than just signing some official papers. It is making house buying a process requiring solution after solution.

In the year 2015, housing market data indicated more than 25% of all first time buyers requested financial help for an initial deposit from family and friends. This trend appears to be rising in popularity as more buyers are resorting to such a practice.

Mark Harris of mortgage broker SPF Private Clients commented on the trend, saying: "Money from parents must really be a gift rather than a loan as far as mortgage lenders are concerned, so that it doesn't impact the borrower's affordability.”

Harris added: "Getting the correct legal documentation in place is also crucial, particularly if one set of parents is providing support to a young couple. Parents will want to protect their deposit gift if the couple split up so that it is returned to the parents and not split between the two parties.”