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Average mortgage deposit from Bank of Mum and Dad is now £18,505

A new study suggests more parents are taking on debts in order to help their children step onto the property ladder.

One in seven parents have found themselves in debt after dipping into their savings to help their children onto the property ladder, according to a new study.

Some were forced to re-mortgage or even downsize their own home to find the funds.

Spiralling housing costs meant the average sum being loaned or given to help adult children to buy their first home had risen to £18,505.

A third of parents questioned said their financial security had been affected.   More than three quarters had dipped in to their savings while one in six had cut back on expenditure.  More than one in 10 said they had cashed in their own investments in order to raise money.

One in 40 has even gone as far as to downsize and sell their own home to raise the capital and nearly one in 20 has re–mortgaged their home.  The research also showed that, despite 16 per cent of parents calling the money a loan, less than half of this number expected to have the full sum returned.

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