Bank of mum and dad ‘one of UK’s biggest mortgage lenders’
Parents spend so much money to get their children onto the housing ladder that they are now among the biggest lenders in the UK, a survey suggests.
The average parental contribution for homebuyers this year is £24,100, up by more than £6,000 compared to last year, according to Legal & General (L&G).
Collectively parents have given £6.3bn, high enough to rank the bank of mum and dad 10th if it was a mortgage lender.
Clydesdale Bank, the UK’s 10th largest mortgage lender lent £5bn last year.
L&G said thousands of UK buyers were reliant on their parents to either get onto the housing ladder in the first place, or upgrade to a larger home.
Almost a fifth of those who said they had, or would help a family member buy a home, said it was because they felt it was their personal responsibility to help out.
But the financial services firm warned that parents’ generosity could hurt their standard of living in retirement.