The so-called “Bank of Mum and Dad” would rank as the UK’s tenth biggest mortgage lender based on the estimated £6.3bn of financial assistance that parents provided to fund their children’s property purchases last year.
Research by Legal & General estimates that parents are lending or gifting an average of £24,100 to help their offspring on to the property ladder — a £6,000 increase on a year previously.
Clydesdale, the UK’s official tenth largest mortgage lender, lent £5bn last year according to data from UK Finance.
L&G warned that parents who were too generous risked hurting their standard of living in retirement.