You are here: Home - First Time Buyers - News -

Young homebuyers admit to guilt over reliance on ‘Bank of Mum and Dad’

Written by: Tim Chen
Young homebuyers admit to guilt over reliance on ‘Bank of Mum and Dad’

Young adults feel guilty about receiving help from the ‘Bank of Mum and Dad’, according to a new report from Yorkshire Building Society.

The results revealed that 59% of respondents expected to receive familial assistance for their first property – double the number of first-time buyers (26%) who received support with their deposits in 2016.

Two-thirds of these would-be UK homeowners who expected financial assistance admitted that they feel bad about taking the cash. Despite the guilt, however, getting a helping hand from the ‘Bank of Mom and Dad’ is quickly becoming the norm.

With an average price tag of £198,325 for a first house in England, a 10% deposit entails an almost £20,000 upfront cost. The survey found 80% of respondents expect the total value of familial support to be less than this amount, but 14% of respondents aged 25-40 expected the value of financial support to be above £40,000, compared with 5% of those aged 18-24 who expected such a large contribution.

Part of the reason these borrowers feel guilty is driven by concerns over impacts on their family. The survey found that 59% of those expecting financial support worried about harming their parents’ future financial prospects by asking for help.

The bright side

However, guilt and gloom is not all that would-be buyers are feeling: Almost two-thirds of those surveyed (65%) are optimistic, believing that it’s likely or very likely they will become homeowners at some point.

Over half (56%) said that owning a home is a major marker of life success (compared to 63% in 2016), and 56% said they’re currently saving for their first house.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Your Mortgage Guides

Your Mortgage Award Winners 2021-2022

Read our guide to the best mortgage lenders in the UK

Read More >