Today, the “Bank of Family” is impossible to ignore. According to the Office for National Statistics, today’s full-time employees expect to spend around 8.3 times their annual earnings to buy a home. And our research shows help from parents, grandparents and other family members reached £8.1bn in 2023, 77% of which went towards deposits for property purchases. But what do we know about the Bank of Family and the motivations for lending and gifting? In this post, Legal and General spoke to our own Mike Jones to get an adviser’s perspective on the challenges and opportunities of today’s later life lending landscape.
Mike, why did you get into later-life mortgages?
“In banking you’re exposed over time to the challenges older clients face, especially the lack of personal contact and tailored services. I’m a fan of giving my clients a personal service, whether that’s face to face or remote. So, I wanted to be in a position where I could really help people in this way.”
What made you get qualified with equity release?
“When you think about later life lending you think of equity release products. But, with retirement starting later and the need for wider family support to get younger generations onto the property ladder, understanding the whole landscape is really important. So, being able to advise on a broader suite of products felt appropriate.
It means I have the knowledge to think more holistically about each family’s situation and what might work best for everyone. The more you understand about the different types of borrowing, at all stages of life, the more confident an adviser you will be.”
How is the Bank of Family changing the later-life lending landscape?
“50 to 60 years ago people would get married, buy a house, start a family. But, today, there are other life events taking place first. Learning to drive, buying a car, going to university. All these things are additional ‘rungs on the ladder’ before you move into home ownership.
Mum and dad can’t necessarily keep providing so there’s a need for more family members to step in and help, such as grandparents. This adds another dimension to the landscape.”
How can specialist later life advisers better support families?
“Factoring in pensions, savings and investments is crucial. If needed, I’ll recommend specialist help from other advisers. A pensions specialist for instance. That’s something I think is important.
Understanding family dynamics as well as the mortgage market today is also advantageous, ultimately improving the advice you give. I find it a real benefit and I know my clients really trust my support. Having as much information as possible goes a long way.”
Ready to find out more? Visit our dedicated later life lending page to arrange your free 10 minute discovery call!
Mike Jones
Later Life Lending Specialist
Mike Jones is a later life lending specialist who is responsible for the “Mewstone Later Life Lending” service. Mike has years of experience in retail banking as well as extensive knowledge of the later life lending sector.
Choosing to release money from your home is a big decision and it’s important for you to understand all the options available to you. This means that he will always offer you unbiased advice. It doesn’t matter to us which solution or lender is recommend, as long as it is the right one for you.