Research published by financial provider Royal London shows that while 28% of parents have, or are preparing to, provide financial assistance to their kids or grandchildren, 34% are not.
Bank of Mum and Dad being stretched to the limit
Those living in the East Midlands were the least likely to offer financial support to their offspring, with 40% saying they would not put money towards a house for their child. Just 21% of people in the region say they would be willing to do so.
By contrast, 39% of parents in London were going to use their savings to support their children’s housing aspirations versus 24% who would not.
Of those parents who were planning to provide financial assistance, 37% says they expected the amount provided to be £10,000 or less. However, 11% of respondents admitted they had set aside more than £50,000 for this purpose.
Only 15% of people say they expect the money to be repaid.
When the Bank of Mum and Dad has to say ‘No’
Helen Morrissey, personal finance specialist at Royal London, says: “The rising phenomenon of the Bank of Mum and Dad has received much publicity but the findings make clear that not all have, or are willing, to offer financial support to children.
“There are several reasons for this. House prices in areas such as the North West and East Midlands are much lower than in areas such as London so it may be the case that parents and grandparents feel their family members do not need their support as much as in other areas of the UK.”
“It may also be the case that these people have other demands on their money and cannot simply hand it over. Anyone looking to hand over money to help a loved one needs to ensure they take their own future needs into account before doing so as they do not want to leave themselves short of money at a later date.”
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