Nearly two thirds of people who are receiving financial support from their families are receiving their funds from the equity release from a relative’s home, according to new research from Hodge.
A recent study looking at how families are working together to purchase property, pay off debts and meet rising living costs, found that 61% of people aged under 50 had done so with the help of relatives releasing funds against the value of their own property.
A quarter of those who had received financial support in this way used the funds to go and purchase a property of their own.
In its latest study, Hodge questioned 1,240 people aged between 16 and 80+ and found that the vast majority (84%) of people aged under 50 claim to need financial support from family to help them with the cost of living generally.
In response, more than half of those aged over 50 (57%) said the cost of living has also affected their ability to lend money to others in return.
Emma Graham, business development director for mortgages at Hodge, said: “What these figures show us is that families are moving into a different era financially, and starting to focus much more heavily on pooling their monetary resources."
“There is a progression now, it would seem, towards meeting the challenges presented by the cost of living crisis as a united family unit, and looking at what can be drawn down from assets the previous generation has amassed in order to support their children or grandchildren now, as opposed to focusing on what could be set to get passed on."
If you are looking for ways to support you and your family with the increased cost of living and getting on the property ladder, please contact us to arrange a free no obligation meeting in the comfort of your own home.