View more on these topics

Seven in 10 people would lend money for deposits

Over seven in 10 people say they would lend money to help loved ones put down a deposit on a house.

The Black Hole of Borrowing study from Virgin Money reveals the top reasons people will lend their money to others are to help them put down a deposit or pay off debt. Over half would lend money if a loved one needed a car, four in 10 would help out financially for a holiday, while over one in 10 would offer money if a family member or friend wanted plastic surgery.

Seven in 10 have dug deep to offer financial help, with the average loan being £168. But the study also shows big-hearted Brits are losing £3.4bn in a black hole of borrowing, with almost half of those who lend money never seeing their cash again.

Over one in five say have put up with a lending loss because they felt too embarrassed or mean asking for their money back, while 2% even had to write off debts when the borrower left the country or died.

Erica Bell, spokesperson for Virgin Money, says: “It seems our generosity knows no bounds with large sums of cash being loaned for everything from house deposits to holidays.

“It&#39s not just a new outfit or phone bill we&#39d be prepared to open our wallets for. We will happily lend on average up to £1,369 to family or a friend but, with 15% admitting to not paying loans back, we might be better off keeping our wallets closed.”

The study also reveals Scots are the most likely to open their wallets with nearly eight in 10 having loaned money to family or friends; dads are less likely to lend to their children, with under three in 10 lending money compared to over four in 10 of mothers, while one in five people in the Midlands admit they have not paid a loan back — more than anywhere else in the country.

Recommended

Concern over plan to hike council tax

Mortgage brokers have warned that one council&#39s plans for dramatic council tax increases on second homes could be followed by thousands around the UK, with potetially grave consequences for the buyer market. South Hams Council in Devon will this week discuss plans for a 40% hike in council tax on second homes. If the council […]

Derbyshire gets new chairman

Neil Hannah is stepping down as chairman of the Derbyshire and will be replaced by current deputy-chairman Ian Menzies-Gow. Neil retired at the end of October, having joined the Derbyshire&#39s board of directors in 1992, becoming deputy-chairman in 1998, and chairman the following year. A fellow of the Royal Institution of Chartered Surveyors, he has […]

Agencies retrain staff after television exposé

Estate agency firms offering financial advice to clients have moved to discipline or retrain staff involved in selfcertification following a BBC exposé. Townends, Barnard Marcus, Kinleigh Folkard & Hayward, and Bairstow Eve Countrywide were among estate agency companies identified in The Money Programme&#39s investigation into the market last week. Mortgage Strategy understands Townends has temporarily […]

Islamic deals from website

Glasgow-based broker firm Select Finance Consultants has launched the first UK website devoted to Islamic mortgages. www.halalmortgages.com is an online financial intermediary dedicated to providing mortgages to UK Muslims who wish to own their own homes or refinance existing conventional mortgages. The site includes product information, enquiry forms, 24-hour online accessibility and can refer visitors […]

Newsletter

News and expert analysis straight to your inbox

Sign up