Around 1.8 million parents have or would consider taking out equity release to help their children get onto the property ladder.
According to a survey by OneFamily, which polled over 2,000 people, the average amount of money people either had already or would be willing to take out for this would be £52,000.
Some 93% of respondents owned their own home either outright or with a mortgage.
Of those with children 64% already have or would consider giving money to help them put down a deposit to buy a property.
Around 41% of people in this segment said that the cost of living meant their children struggled to save a deposit and almost a quarter said renting was “money down the drain”.
Approximately 20% said they were worried that their child wouldn’t be able to meet daily living expenses due to high rent costs.
Equity release can help children get on the ladder
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.”
She continued: “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.
“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.”