'Bank' of mum and dad helps kids on to property ladder

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'Bank' of mum and dad helps kids on to property ladder

Many recent graduates are still relying upon their parents to help them get on to the property ladder for the first time.

New figures compiled by Scottish Widows indicate that the number of graduates using the pecuniary support of parents to help them invest in bricks and mortar for the first time has doubled to almost a fifth since 1996.

According to the group, British parents have provided their children with over £2.1 billion over the last ten years to help them get a footing on the property ladder, with the average loan being £12,188.

While graduates are now less likely to receive gifts from their mums and dads, Scottish Widows' figures show that although they are still likely to borrow money, the repayment term is not clarified by all.

One in six graduates have not set a deadline for when their parents will be paid back, while one in eight won't be paid back until they sell their first home.

Richard Clark, head of product development and marketing at Scottish Widows Bank, said: "It is clear that it is becoming more and more difficult for graduates to get on the property ladder without any assistance and with rising interest rates and house prices they need all the help they can get."

He explained that Scottish Widows mortgages could assist graduate homebuyers by offering 100 per cent packages which enable parents to act as guarantors on repayment.

Related News : Housing market

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