The Bank of Mum and Dad (BOMAD) is the name people use when parents help their children financially.
For many families in the UK, that support can mean help with rent, everyday bills, clearing debts, or saving for something bigger — like a first home.
With living costs rising and big life milestones feeling harder to reach, family support has become more common than it once was.
Here’s how the BOMAD works, why families use it, and what to think about before getting involved.
Family support isn’t new. But it has become more common in recent years.
Living costs in the UK have risen sharply. Food, energy and rent all take up a bigger share of monthly income than they did a few years ago. At the same time, saving for large goals — like a house deposit — can feel slow and frustrating.
These pressures mean more families are pooling resources and supporting each other where they can. Support looks different in every household. What matters most is that it works for everyone involved.
The Bank of Mum and Dad can mean different things for different families.
Sometimes it’s about helping with a big milestone, like buying a home. Other times, it’s smaller support that makes everyday life more manageable.
That might include:
Support can be a one-off payment or regular over time. There’s no set amount or “normal” approach — it depends on what feels affordable and fair for the family.
Most family support falls into one of three categories:
A gift means the money does not need to be repaid.
This is common when helping with a house deposit, but it can apply to other situations too. If the money is used for a mortgage deposit, lenders usually ask for a signed letter confirming:
Being clear from the start helps avoid misunderstandings later.
Some parents prefer to lend money instead of gifting it.
If you choose this route, it helps to:
Loans may affect mortgage affordability checks, so it’s important to factor them in when applying.
Support isn’t always a bank transfer. It might include:
These types of support can make a big difference without money changing hands.
Buying a home is one of the most common reasons families step in.
Saving for a deposit can take years, especially while paying rent. That’s why many first-time buyers receive some form of family help.
Recent UK research from Savills found that in 2024, more than half of first-time buyers received financial help from family when buying a home. In total, family gifts and loans towards property purchases were estimated at around £9.6 billion in one year alone.
Help usually takes the form of:
Both parents and children should understand the risks. Parents need to ensure their own retirement plans aren’t compromised, and children should check how support affects mortgage applications and future affordability.
Helping your child financially can feel natural, but it’s important to pause and consider the bigger picture.
Ask yourself:
Large gifts may also have inheritance tax implications under UK rules. When in doubt, speaking to a financial adviser is sensible.
Receiving help can bring relief, but it also brings responsibility.
Consider:
Money can strain relationships if expectations aren’t clear. Honest conversations at the start protect everyone later.
For many families, it’s a lifeline. It can:
But not everyone has access to family support, which can create differences in opportunity.
There’s no right or wrong answer. The key is making sure any support works for all those involved.
Disclaimer: We make every effort to ensure content is correct when published. Information on this website doesn't constitute financial advice, and we aren't responsible for the content of any external sites.
Fiona is a personal finance writer with over 7 years’ experience writing for a broad range of industries before joining Ocean in 2021. She uses her wealth of experience to turn the overwhelming aspects of finance into articles that are easy to understand.
