According to Legal & General, parents are now spending enough money helping their children get onto the housing ladder that they are among the biggest lenders in the UK.
Since last year, the overall contribution parents have given homebuyers has increased by £6000 – now standing at an average of £24,100.
Overall, parents have lent a total of £6.2bn which is enough to rank The Bank of Parents 10th if it were an official mortgage lender.
Financial services warn that this generosity could hinder parents’ standard of living in retirement. Chief Executive of L&G's Retail Retirement division, Chris Knight stated:
"Many are using their pensions and savings to help out and unfortunately this could be leaving some facing a poorer retirement"
However, almost 20% of those surveyed by L&G said that they had/would help a family member buy a home because they felt it was their personal responsibility.
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