£23k average withdrawal from the bank of mum and dad
Parents are, on average, giving their children £23k towards a deposit for their own home, according to new research by charity, Shelter.
Whilst some parents are able to dip into their existing savings, many others simply do not have this kind of money. This is where equity release could offer a solution as Richard Espley, Head of Equity Release at Goldsmith Williams, explains:
“In many cases it would take decades for a first time buyer to save a deposit in order to buy their own home so it’s no surprise that many are cashing in at the bank of mum and dad wherever possible.
“Problem is, with savings rates pretty non-existent and annuities failing to pay out as much as expected, parents are facing financial difficulties of their own and, while they may wish to help, they simply don’t have the funds available.
“What many parents do have though is a property of their own and equity release allows you to unlock some of its value. With a lifetime mortgage plan you do not have to move and you still remain the owner of the property – you are simply releasing some of the equity which is then repaid once you have passed away or gone into long term care.
“In many ways it is like giving your children an early inheritance at a time when they really need it. And what’s even better is you get to see them enjoy it.”
Content correct at time of publication