Mortgage Mole: Bank of Mum and Dad

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Intrepid Mole, digging up the stories behind the news

Bank of Mum and Dad

Every so often a mortgage story really captures the nation’s interest. Last week the hot topic was L&G research that found that the ‘Bank of Mum and Dad’ had become a top 10 lender by size and that around a quarter of UK residential mortgages involved some sort of funding from parents or relatives.

The story quickly became part of the zeitgeist and was repeated in newspapers up and down the country. But Mole heard that only one man had spotted a lucrative broker angle amid the column inches: London & Country’s Pat Bunton.

“If the ‘Bank of Mum and Dad’ is that big, maybe it should be contributing to FSCS fees and paying us proc fees for retention business,” Bunton joked.

Preposterous pricing

Mole is always on the lookout for interesting nuggets of property news, especially if they provide a tonic to the prevailing trend towards ever-higher house prices.

A Mole reader’s eye was caught last week by a property in Airdrie, Scotland, that was up for auction at a guide price of just £1. The three-bedroom flat needed considerable work done on it but Mole could not help thinking it was a good deal.

By contrast, this week Mole spotted a former garage converted into a one-bed flat in Abbey Wood on the outskirts of London that is being rented out for £850pcm. The flat is described as “compact”.

Mole sometimes wonders how much further all this craziness can go.