BANK OF MUM AND DAD IS BECOMING MORE LIKE A REAL BANK AND LESS LIKE A CHARITY 
 

• Number of parents expecting kids to pay money back has doubled over ten years

• Number of parents giving away money to kids has fallen from 38% to 32% in the same period

• Average deposit for graduate homebuyer is £16,219

• Average amount borrowed from parents and friends is £12,188

• Parental loans alone have amounted to £2.1bn in the last 10 years

• One in five (19%) graduate non-homeowners are currently living with their parents or friends rent free

Almost four in ten (39%) graduates would not be able to get on the housing ladder without their parents helping them fund a deposit according to new research from Scottish Widows Bank.

• However, some parents are no longer willing to give their money away, instead expecting the money needed for a deposit to be paid back.

• The number of graduates receiving gifts from the Charity of Mum & Dad has fallen from 38% ten years ago to 32% in 2006.

• Whilst at the same time the number of graduates being forced to take a loan from the Bank of Mum & Dad has doubled – from one in ten (9%) in 1996 to almost one in five (18%) in 2006.

• The total amount of money lent by the Bank of Mum & Dad over the last 10 years is £2.1 billion, with the average loan standing at a sizeable £12,188. The average deposit for a graduate first time buyers currently stands at £16,219.

One area where the Bank of Mum & Dad is less like a real bank is in repayment terms. One in six graduates has set no deadline to pay their parents back and for one in eight (13%), the debt won’t be paid back until they sell their first home.
Not only do graduates have to rely on their parents to fund their deposit, they also often have to lean on them for accommodation while they get their finances in order after university.
One in five (19%) non home-owning graduates are currently living with their parents or friends rent free, rising to 44% of graduates that left university in the last year. Even just over one in ten graduates (11%) who graduated five years ago are still living with their families without paying them a penny. However, the average figure is down from last year (one in four) suggesting that parents are becoming less charitable.

Scottish Widows news releases appear on our website at www.scottishwidows.co.uk
 

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