Parents helping kids with house cost

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Parents helping kids with house cost

Thu 9th Nov 2006

The bank of mum and dad is very much still open for business as new research has shown that four million UK parents are part-funding their children's house moves.

It has been discovered by unbiased.co.uk, the consumer brand of IFA Promotion, that one in eight parents have given - or are planning to loan - their kids at least £20,000 towards the cost of purchasing a new home.

Additionally, 76 per cent of parents have said that they do not expect to see their money paid back, highlighting the generosity of mums and dads across the UK.

Karen Barrett of unbiased.co.uk remarked: "Buying a home is one of the biggest financial decisions you will make."

"Even though our research shows parents are willing to help their children with this significant financial burden the need for advice when making such a great financial commitment is clear," he continued.

Parents are warned, however, that a significant gift could be subject to Inheritance Tax implications and unbiased.co.uk urges that mums and dads seek advice before giving large sums of money to their children.

IFA Promotion has been operating for over 17 years as an organisation that extols the benefits of independent financial advice.

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