As Parents Become A Top Lender, Experts Urge Them To Share Wealth Wisely

New research has suggested that the ‘bank of mum and dad’ will finance 25 per cent of all mortgages in the UK in 2016, promoting legal experts from law firm Irwin Mitchell, to call on parents to make sure they are protecting their investments.

According to the research by financial services group Cebr, parents will lend over £5 billion this year, purchasing homes worth £77 billion and providing deposits for over 300,000 mortgages.

The findings show that the average financial contribution from the bank of mum and dad's is £17,500 or 7 per cent of the average purchase price of a home, making parents as important as one of the UK's top 10 lenders.

The research shows that three-quarters of family-funded house purchases are financed by parents, with family friends and grandparents also contributing to make up the difference.

Family law expert at national law firm, Irwin Mitchell, Alison Hawes said ‘bank of mum and dad’ loans should come with a warning as parents need to protect their investments.