Bank of mum and dad consider equity release to help their children buy a home

Posted in: Corporate

  • Almost 2 million parents over the age of 50 have either taken out equity release, or would consider doing so, to help their children get on the property ladder
  • 41% say their children cannot afford to save for a mortgage due to cost-of-living crisis
  • Nearly two thirds (64%) have or would consider giving money to their kids for deposit.

As property prices remain high and the cost-of-living crisis bites, parents are turning to lifetime mortgages to help their children buy a home.

Almost 2 million (1,868,821) parents over 50 either have, or would consider, taking out equity release to help their children get on the property ladder, according to research conducted on behalf of financial services mutual, OneFamily.*

The survey of 2,000 over 50s suggests the average amount of money people either had already, or would be willing to take out on their home for this purpose, was £52,000.

The research, which was conducted by Opinium on behalf of OneFamily, comes at a time where many are concerned about high costs of rent and essentials such as food and bills, and how this affects their children.

Of those with children who rent, 41% said the cost-of-living crisis means their kids can’t afford to save a deposit for a mortgage. Meanwhile, 24% think renting is ‘money down the drain’ and 20% worry their child won’t be able to meet their daily living expenses due to high rent costs.

Out of the 2,000 people surveyed, 93% owned their own home, either outright or with a mortgage. Of those who have children, nearly two thirds (64%) said they either already have, or would consider giving money to help them put down a deposit to purchase a property.

Jackie Davies, Head of Customer Service and Direct Sales at OneFamily, said, “It’s becoming increasingly difficult for first-time buyers to get their foot on the property ladder, and many parents want to help where they can. With savings in the Bank of Mum and Dad now often depleted by the cost-of-living crisis, parents are turning to equity release to help their children.

“Equity release isn’t right for everyone, but in some circumstances, lifetime mortgages can help people free up cash held within a property for a number of purposes, whether that’s home improvements for yourself or gifting to loved ones. It can be used to help family members buy a home of their own, and even allow them to put down a higher deposit to then have lower mortgage rates.

“For those considering equity release, speaking to a specialist adviser such as OneFamily Advice should always be the first step in understanding whether it can be right for them.”


Notes to Editors

*In the survey of 2,000 over 50s, 13% of those who are parents said either have, or would consider, taking out equity release to help their children get on the property ladder. According to recent ONS data, there are 22,671,417 over 50s in the UK. This equates to 1,868,821 parents over 50 who either have, or would consider, taking out equity release for this reason.

Unless otherwise stated, all research conducted by Opinium, on behalf of OneFamily, between 25 September – 3 October 2023, among a nationally representative sample of 2,000 UK adults aged over 50.

About OneFamily

OneFamily is a member-owned financial services company that offers lifetime ISAs, lifetime mortgages, junior ISAs, child trust funds, bonds and over 50s life cover.

We have over 45 years’ experience of being a trusted provider of financial solutions, with nearly 2 million customers and over £5.5 billion in funds under management at the end of 2022.

We are the UK’s biggest child trust fund provider, holding over 25% of the market.

At OneFamily, we’re owned by our members for our members – and doing right by them is at the heart of our business.

We don’t have shareholders to pay dividends to, so we reinvest our profits to provide quality products and services for the benefit of our members.

We think that financial products should be accessible to everyone regardless of how much money they have to invest. That’s why our products have low investment levels and minimum contributions, giving more people the opportunity to save regardless of their circumstances.

Inspiring Better Futures

Our Inspiring Better Futures vision underpins our commitment to doing the right thing at every level for our members and customers, colleagues and communities.

The Inspiring Better Futures vision is built on 3 pillars – Members and customers, colleagues and communities.

Our focus is on long-term sustainability, so we can continue to be relevant and impactful to our members and communities.

Access to education and training

The costs of further education and training can be a barrier to many young people and their families. This is why we offer OneFamily customers the opportunity to apply for a Young Person’s Education Grant of up to £250 – for someone aged 15-19 – to help meet these costs, when they would otherwise struggle without financial assistance. The grant can be used towards study materials, specialist uniform, travel costs or a laptop/tablet.

Applications are open throughout the year, and grants are awarded following a random computerised draw.

We’ve improved the lives of over 3,400 people through our individual grants since 2015.

Charity Partnerships

Supporting our communities has been a key focus of ours for many years. We’ve established partnerships with local and national charities that champion access to education and improving life chances for people from disadvantaged backgrounds.

For more information on how we support our members and communities see:
Education Grants
Charity Partnerships