Banking Code of Practice tightens rules on bank of mum and dad
The ninth-largest source of home loans in January 2019? The bank of mum and dad.
The new Banking Code of Practice is expected to reduce loans from the "bank of mum and dad" - parents lending money to help adult children buy a home. It imposes more scrutiny on borrowers with a deposit provided entirely or in part by parents. The aim? To prevent those parents depleting their retirement savings by funding their children’s property purchases.
Like many things related to property, opinions are split.
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