The bank of mum and dad is a phrase that emerged some years ago to describe younger people accessing funds from a traditional source.
This has recently extended to include the bank of granny and grandad, and perhaps for the first time a piece of research outlines the extent to which younger people are making withdrawals.
House builder Taylor has recently reported that based on interviews with 1,000 young people, one in 10 turned to their grandparents for help to buy a home. It’s a surprising statistic and one that reflects the difficulty that the younger generation is having in getting on the housing ladder.
Not specifically covered in the research, however, is the trend for the retired population to use equity release to help with financial demands. This is not a new trend although it has grown over recent years with many reporting the pleasure they receive in helping younger relatives.
Product developments last year included using parents’ equity to increase LTVs.
It’s only a matter of time before we see equity release developing in a similar way.