Some 1.8mn parents over 50 either have or would consider taking out equity release to help their children get on the property ladder, research conducted on behalf of OneFamily has revealed.
The research, which surveyed 2,000 over 50s, also suggested the average amount of money people either had already, or would be willing to take out on their home for this purpose, was £52,000.
Speaking on this, OneFamily head of customer service and direct sales, Jackie Davies, 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.”
The research, which was conducted by Opinium on behalf of OneFamily, comes at a time where many are concerned about high costs of rent and essentials such as food and bills, and how this affects their children.
Of those with children who rent, 41 per cent said the cost-of-living crisis meant their kids couldn't afford to save a deposit for a mortgage.
Meanwhile, 24 per cent thought renting was “money down the drain” and 20 per cent worried their child wouldn't be able to meet their daily living expenses due to high rent costs.
OneFamily also provided insight into those surveyed with 93 per cent of those surveyed owning their home, either outright or with a mortgage.
Additionally, of those surveyed who have children, nearly two thirds (64 per cent) said they either already had or would consider giving money to help them put down a deposit to purchase a property.
Davies warned that 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.
“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 should always be the first step in understanding whether it can be right for them.”
tom.dunstan@ft.com
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