A new report out from Legal and General has shown that the Bank of Mum and Dad are now officially one of the UK's largest mortgage lenders, with parents expected to gift their offspring a total in excess of £6.3 billion this year alone. The Legal and General poll of 1,600 parents showed that over 50% of respondents were using cash to assist their children with property purchases.
The new report, which was prepared jointly with research consultancy Centre for Economics and Business Research shows that the Bank of Mum and Dad's average parental contribution to children looking to purchase a property was now £24,100. The report when on to show that approximately 16% funds provided by Bank of Mum and Dad would be provided via an equity release on their existing property.
This method of using requity release as a means to support a child's property purchase comes despite increased warnings of an uncertain retirement as a result. In fact, more than 25% of those surveyed said that they were not confident that they had enough money for their retirement, with 15% saying they had already accepted a lower standard of living as a result of helping out their children.
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