The survey was conducted by Family Investments, they found that 24 per cent of parents plan to help their children get onto the housing ladder by acting as guarantor, compared to two-thirds of those who plan to just give their children the money outright.
Earlier research from Lloyds TSB has indicated how the so-called Bank of Mum and Dad is evolving.
The report also found that more detailed knowledge of guarantor mortgages was low among the 53 per cent who had heard of them – when asked a series of true or false questions about the characteristics, just under half of respondents were able to correctly identify the right answer every time.
Of the 529 parents who responded, only four noted that they had received support in the form of a guarantor mortgage from their own parents. This is especially significant and highlights the change happening in today’s mortgage market, where first time buyers can only get high LTV mortgages with some form of additional guarantee.
The Family Investments research also highlighted just how important the Bank of Mum and Dad is as a lender in the current climate. Of the non-homeowners questioned over a third are planning to buy and nearly a third of these expect their own parents to help in securing a mortgage.
The head of Savings and Investments at Family Investments, Kate Moore, commented: “It’s obviously becoming increasingly difficult for young adults to get onto the property ladder. As it becomes harder for young people to save enough for a deposit on their first home, parents have to consider other ways of supporting their children into the future.
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