Parents become ‘one of the UK’s biggest mortgage lenders’
Parents who help their adult children take their first steps on the property ladder are among the highest mortgage lenders in the UK, a survey claims.
Research from Legal & General (L&G) showed the average parental contribution in 2019 is £24,100 – an increase of £6,000 from last year.
The latest findings show the ‘bank of mum and dad' gifted £6.3 billion in 2019, enough to make parents the 10th highest mortgage lender in the UK.
Tapping into lending attitudes, 56% of 1,600 respondents considered assisting family with property purchases, while 19% felt they had a responsibility to help.
Cash (53%) remained the most popular funding source in 2019, while 22% of over-55s withdrew money from their pensions.
Chris Knight, chief executive at L&G retail retirement, said:
"Parents and grandparents across the UK want to see their loved ones settled in homes of their own and are giving generously.
"Thousands are still dependent on the bank of mum and dad to take their first or next step on Britain's housing ladder.
"The generosity of parents and grandparents is inspiring, but many are making big financial decisions without adequate planning or professional advice."
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