Whether you're a parent or an older child, you'll be familiar with the call of "Mum, can you lend me a tenner?" or "Dad, any chance of me borrowing some money to buy a car?"
The true extent of the Bank of Mum and Dad, however, has be brought sharply into light by new research from economic consultants and financial services provider Legal & General. Mums and Dads are digging deep this year to help their offspring get a foot on the property ladder, lending them over £5 billion towards deposits.
In fact, the sum loaned is equivalent to that of a top 10 mortgage lender - truly earning them the title of Bank of Mum and Dad.
The research also found that the Bank of Mum and Dad’s average financial contribution is £17,500, or 7% of the average purchase price.
While the relationship between child and parent is based on love and generosity, the questions hangs in the air about repayment - especially in an era where many parents will still have their own mortgage to repay. While the majority of parental contributions are gifts (57%), the research found 18% are loans with no interest and 5% are loans with interest.
Are you a parent able - or unable - to help your child buy a property? Are you a first-time buyer plucking up the courage to ask Mum and Dad for a loan? London Residential would love to hear your story. We can offer free mortgage and home buying advice, so please get in touch.
Parents are set to lend over £5 billion to their offspring to buy a home by providing deposits for over 300,000 mortgages, purchasing homes worth £77 billion in 2016, according to new research.