Mum & Dad are Bankrolling House Purchases for the Kids

By Gary Cutlack on at

People with rich parents win again at life when it comes to buying homes, it seems, as research suggests that 26 per cent of all home purchases in the UK are done with some deposit money coming in from mum and dad.

That's according to data collated by insurer Legal & General, which says that a staggering £6.5bn is being handed down through the generations to help pay for homes -- a figure that's up from £5bn the year before.  This hand-me-down is enabling around 298,000 mortgages to be taken out, money that's allowing £75bn worth of housing stock to be purchased by people whose parents timed it right and struck it lucky.

This total puts family lending on a level with the amount of money handed out in mortgage form by the Yorkshire Building Society, making mums and dads the joint ninth largest mortgage lenders in the UK, but presumably with slightly more favourable terms. The average amount loaned/handed out per struggling child is a massive £21,600, up from the previous year's £17,500. [Sky News]

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