Parental lending ‘on the increase’

Recent research carried out by the Council of Mortgage Lenders (CML) found that around 35 per cent of prospective homebuyers say they would need to borrow money from their parents before they could afford to get on the property ladder.

Furthermore, around 28 per cent of these children in need of financial assistance from their parents suggest that they are unlikely to get it, the CML has revealed.

Head of research at the CML Bob Pannell remarked: “Over the past few years, parents have already been providing significant help to younger home-buyers, and there is uncertainty about whether they can do even more.”

Meanwhile, the Bank of England increased the financial pressure on British credit consumers aiming to clear debt earlier this month by raising the base rate of interest by a quarter-point to 5.5 per cent.