Are you a parent or grandparent struggling to see your kids get on the property ladder? You’re not alone! A new report shows that 42% of under-55s rely on family help to buy their homes – and it’s costing families billions!

With house prices still high, it’s no surprise that getting a mortgage is a distant dream for many young people. Thankfully, the “Bank of Mum and Dad” is stepping in to help. New research from Legal and General shows that families will be involved in a record-breaking 335,000 house purchases in 2024, dishing out a massive £11.3 billion by 2026.

But where is all this cash coming from? Well, it turns out many parents and grandparents are dipping into their own property wealth. A significant 19% are choosing options like downsizing (12%), equity release (8%), or even remortgaging (4%) to free up cash.

Equity release, in particular, is becoming increasingly popular, with 9% of Legal & General customers using it specifically for gifting in the first half of this year alone.

However, while financial advice is mandatory for equity release, a worrying 74% of family lenders haven’t sought any professional guidance before handing over their hard-earned savings.

Lorna Shah, an expert in retirement finances, warns: “Property is often a family’s biggest asset, so it’s understandable they want to use it to help their loved ones. But it’s crucial to get expert advice before making large gifts, even if it’s not directly from your property. This protects your own financial future and ensures you make the best decision for everyone involved.”

So, while the “Bank of Mum and Dad” is generously supporting the next generation of homeowners, it’s vital to seek professional advice before making any big financial decisions. After all, you’ve worked hard for your money – make sure it works hard for you too!