Almost two million parents over the age of 50 have either taken out equity release, or would consider doing so to help their children get on the property ladder, research from OneFamily has revealed.
The survey of 2,000 over-50s suggested that the average amount of money people either had already taken out, or would be willing to take out, on their home for this purpose was £52,000.
The research, conducted by Opinium on behalf of OneFamily, found that of those with children who rent, 41% said the cost-of-living crisis means their children could not afford to save a deposit.
Meanwhile, 24% thought renting was ‘money down the drain’ and 20% worried that their child would not be able to meet daily living expenses due to high rent costs.
Out of the 2,000 people surveyed, 93% owned their own home, either outright or with a mortgage.
Of those who had children, 64% either already had given, or would consider giving, money to help them put down a deposit to purchase a property.
Jackie Davies, head of customer service and direct sales at OneFamily, said: “It’s becoming increasingly difficult for first-time buyers to get their foot on the property ladder, and many parents want to help where they can.
“With savings in the Bank of Mum and Dad now often depleted by the cost-of-living crisis, parents are turning to equity release to help their children.
“Equity release isn’t right for everyone, but in some circumstances, lifetime mortgages can help people free up cash held within a property for a number of purposes, whether that’s home improvements for yourself or gifting to loved ones.
“It can be used to help family members buy a home of their own, and even allow them to put down a higher deposit to then have lower mortgage rates.”
Davies added: “For those considering equity release, speaking to a specialist adviser such as OneFamily, advice should always be the first step in understanding whether it can be right for them.”
