Parents lend £8.4 billion towards housing costs

15 September 2011

Research conducted by Sainsbury’s finance has calculated the amount of cash parents lend to help their children with mortgage deposits and repayments.

Parents have spent a total of £8.4 billion over the last year just to help children with housing costs.

Large initial deposits for first time buyers have been blamed for a sizeable proportion of the lending whilst some parents have been put in the difficult position of either helping their children with existing mortgage repayments or risk seeing them fall into arrears.

Advice for cutting back on spending to avoid falling into arrears and to save for an initial deposit includes:

  • Make a budget and stick to it
  • Clear debts
  • Switch to own brand food stuffs
  • Place savings in a high interest savings account or invest in premium bonds
  • Swap costly nights out for cheaper pastimes

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