Belmont Thornton Logo
PPI Claims - About PPI

PPI Claim News

Interest charged on loan claims made through 'bank of mum and dad'

While many people may borrow money from their parents to avoid bank charges and other expenses involved in loan claims, many mothers and fathers expect interest to be paid on these debts.

Research from HSBC found that while 19 per cent of first-time buyers (FTBs) in the last year  received some cash from their parents, 52 per cent of the family members who provided the money expect it to be paid back.

Also, 73 per cent of these individuals wish to receive some interest on the debt as well, with common rates ranging from 2.1 per cent to 2.5 per cent.

Only 31 per cent of families who provided FTBs with financial assistance gave outright cash gifts, while 17 per cent requested part-ownership in the real estate.

"Family support has become an important part of the first-time buyer financing mix," HSBC head of mortgages Peter Dockar said, adding: "It is best to agree the terms with family members at the outset."

Charles Baker
Charles is a reputed financial analyst with decades of experience under his belt. ADNFCR-2776-ID-801473653-ADNFCR

Bookmark and Share
Tell a Friend
blog comments powered by Disqus

Enquiry Form

First Name 
Last Name 
Mobile Phone
Home Phone
Address Line 1 
Post Code 
Claim Back Mis-Sold PPI Button

Belmont Thornton Limited is regulated by the Claims Management Regulator in respect of regulated claims management activities; our registration is recorded on the website number 18273

Belmont Thornton Limited is incorporated in England and Wales, Company number 6621233, whose head office at Unit B11, Kestrel Court, Harbour Road, Portishead, Bristol, BS20 7AN and registered office at Harwood House, 43 Harwood Road, London, SW6 4QP.

Belmont Thornton Limited is registered with the Information Commissioners Office. Registration number Z1728023.

Please note that calls may be monitored for the purposes of staff training.

* Belmont Thornton operates on a "No Win No Fee" basis. This means that there are no upfront costs to pay. Our fee only becomes payable on a successful outcome of a claim. A cancellation fee is payable if you decide that having instructed Belmont Thornton to act on your behalf, and after 14 days of signing your Letter of Authority, you do not wish to continue pursuing your claim with us. The cancellation fee is the reasonable costs incurred for the work undertaken. Please see our terms of engagement.

By using our web-site, you agree that we can place the types of cookies described in our privacy policy on your device.Hide