Is the Bank of Mum and Dad Drying Up in 2025? What First-Time Buyers Need to Know

For years, the Bank of Mum and Dad has played a crucial role in helping first-time buyers get onto the property ladder. In fact, parental gifts and loans have consistently accounted for billions of pounds in UK mortgage deposits. But with the ongoing cost of living crisis, economic uncertainty and higher interest rates, many families are questioning whether they can still afford to help.

So, is the Bank of Mum and Dad drying up in 2025? And what does this mean for buyers trying to save a deposit?

Are Parents Still Helping With Mortgage Deposits?

Rising living costs and financial pressure mean parents are becoming more cautious about offering large cash gifts. Higher mortgage rates, increasing household bills and concerns about future savings have caused many families to hold back. Even parents who are financially comfortable are feeling more nervous about parting with lump sums in the current economic climate.

As a result, fewer first-time buyers are receiving the level of support they might have expected a few years ago — and this could shift the landscape of homeownership.

Why the Bank of Mum and Dad Is Under Pressure

Several factors are contributing to parents reducing or delaying help with deposits:

1. The cost of living crisis

Everyday expenses — from food to fuel to energy — have risen sharply, leaving families with less disposable income.

2. Economic uncertainty

With ongoing concerns about inflation, job security and fluctuating mortgage rates, many parents are prioritising financial stability.

3. Retirement planning and long-term security

Parents are increasingly worried about their own future, meaning fewer are willing to reduce their savings or investments.

4. Larger deposits still required

Despite slower house price growth, buyers still face high deposit requirements, which can put parents under further pressure.

What Does This Mean for First-Time Buyers in 2025/26?

While parental help hasn’t disappeared, it’s becoming less reliable as a guaranteed route onto the property ladder. First-time buyers who were counting on the Bank of Mum and Dad may now need backup options or alternative strategies.

The good news is that lenders and the government continue to offer support designed to make buying a home achievable — even without family help.

Alternatives When the Bank of Mum and Dad Can’t Help

If you’re struggling to save a deposit or parents can’t offer the same level of support, there are several options worth exploring:

✔ Low-deposit mortgages (including 5% deposit deals)

Many lenders offer competitive products that allow you to buy with a smaller deposit.

✔ Joint borrower, sole proprietor (JBSP) mortgages

Parents can help with affordability without gifting money and without being named on the property deeds.

✔ Family springboard mortgages

These allow parents to support you by placing savings into a linked account instead of giving money away.

✔ Shared Ownership & First Homes schemes

These government-backed options can reduce both the deposit and mortgage needed.

✔ Gifted deposits from extended family

Even if parents can’t help, other relatives such as grandparents or siblings may be able to contribute.

Should Parents Still Help With Deposits?

Parental support can still make a huge difference — but it should be approached carefully. Families should consider the long-term impact, tax implications and affordability before making decisions. Open discussions and independent financial advice can protect everyone involved.

Final Thoughts: Is the Bank of Mum and Dad Drying Up?

The Bank of Mum and Dad isn’t closed, but it’s definitely under pressure. With many families feeling the strain of the cost of living crisis, fewer parents are in a position to offer large mortgage deposits in 2025.

If you’re a first-time buyer struggling to save — or a parent wanting to help without putting your own finances at risk — speaking to a mortgage adviser can open up options you may not know exist.

Want personalised guidance?
At Less Stress Mortgages, we help first-time buyers and families find smart, realistic solutions — whether the Bank of Mum and Dad is open or not.