Nearly one in five parents and grandparents who helped a family member buy their first home used their own property wealth to do so, new research [1] has shown, raising concerns that some might be leaving themselves short.
Families help out
FTBs are increasingly relying on family members’ support to get on the housing ladder. In total, 42% of parents and grandparents aged over 55 have helped fund a family member’s property purchase. Parents and grandparents eager to help out are in turn using a combination of their savings (68%), investments (22%), and pension (14%) to find the funding.
Many not seeking advice
The research showed that 18% have used their own home to generate the money, either through equity release, downsizing, or re-mortgaging. It also found that 72% of parents and grandparents don’t seek formal advice before making gifts.
Here to help
Making a gift to a family member to buy their first home can be a rewarding way to use your hard-earned money. But it’s important to think about your own needs. We’re here to help you make a balanced decision that’s right for your unique situation.
[1] L&G and CEBR, 2023
🚨 Data accurate as of the date of publication – 08.03.2024
🚨Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
🚨 The above material is for informational purposes only and does not constitute a sales offer or financial advice. Before taking out any insurance, credit agreement or other financial product, you should obtain individual advice on your requirements and the general terms of the contract.
Source: Quilter Financial Planning – Essentially Mortgages Q1 2024
