New survey suggests
The “Bank of Mum and Dad” is the 10th biggest UK mortgage lender, this is due to the fact that buyers are relying more and more on their parents for financial support.
According to insurer Legal and General (L&G), this year parents will lend £6.5bn, they will also be involved in 26 per cent of all UK property transactions.
This figure is up from £5bn of lending which was estimated by L&G a year ago.
Lenders have said the average person buying a home for the first time needs around £26,000.
Research by L&G suggests that parents provide deposits for more than 298,000 mortgages.
Legal & General chief executive Nigel Wilson said: “Parents want to help their kids get on in life, and the Bank of Mum and Dad is a testament to their generosity, but it is also a symptom of our broken housing market.”