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Brits relying on parents for cash, research shows

Brits relying on parents for cash, research shows

Category: Loans

Updated: 19/11/2008
First Published: 19/11/2008

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Parents are becoming the favoured source of finance for grown-up children who have left home, the findings of a new study have revealed.

The current problems in the banking sector have made it more difficult for people to obtain mortgages and unsecured loans, but it appears many have a back-up plan.

An Engage Mutual survey discovered that more than two-fifths of parents had helped to finance a home purchase for children aged over 25.

It also found that 23 per cent had given their children help to fund their higher education or repay debts accumulated during student days.

While some parents have to assist their offspring to deal with immediate financial problems, the study also found others are helping them to plan for the future by making regular payments into their savings accounts.

Nick Breton, spokesman for Engage Mutual, said that parents needed to consider what investments to make in order to help support their children well beyond the day they become adults.

He explained: "British parents are providing more financial support to their adult children who are finding it increasingly difficult to stand on their own financial feet."

Independent Financial Adviser website recently published figures showing that 250,000 people in the UK now have to provide financial support to both grown-up children and their own parents.

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