Nationwide is said to be restricting the amount of money first-time buyers (FTBs) can use as a deposit that has been gifted to them by their parents – or the Bank of Mum and Dad as it’s more commonly known.
It is believed that Nationwide is now asking FTBs to prove at least 75% of the money they put down for a mortgage comes from their own savings.
This new announcement comes just months after the building society informed customers they would need at least a 15% deposit to secure a mortgage.
Savills, the estate agent, recently ran a survey which revealed that 40% of FTBs who were accepted for a mortgage in 2019, had financial assistance from their family.
Figures revealed that the Bank of Mum and Dad totalled £5bn last year, showing that it was a helpful option to help people onto the property market.
