• From This is Money:

    But there could be a sea-change on the cards as more and more parents help the children out financially and look to cover themselves against their offspring defaulting on payments.

    This could cost £27 per month for a £50,000 debt and if something happens the loan repayments or lump sum should then be covered.

    According to Lloyds Banking Group, a fifth of parents give their children money to help them on to the housing ladder.

    Figures from Hartwood Wealth Management in Spring 2008, when average first-time buyer deposits stood at £15,500, said 5.5m parents had already given more than £116bn to their children to help get them onto the property ladder.

    Peter Chadborn, of CBK Colchester, an independent financial adviser, says: ‘When parents assist their children financially, often this entails a loan of some form or another. But this loan is more and more often being taken out at a time when parents are making serious plans for retirement or are even at retir…

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    Posted by Jon @ 3:58 pm

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