Nearly two thirds (61 per cent) of those receiving financial support from their families are benefitting from funds sourced from the equity of their relative’s home, research from Hodge has revealed.
The research, which surveyed 1,240 people aged between 16 and 80, looked at how families are working together to purchase property, pay off debts and meet rising living costs.
It was found that, of the 61 per cent had who had met these challenges with the help of relatives releasing funds against the value of their own property, a quarter used the funds to go and purchase a property of their own.
Hodge business development director for mortgages, Emma Graham, commented: “What these figures show is that families are moving into a different era financially, and starting to focus much more heavily on pooling their monetary resources.”
She said there is a “progression” now towards meeting the challenges presented by the cost of living crisis as a united family unit.
“Looking at what can be drawn down from assets the previous generation has amassed in order to support their children or grandchild now, as opposed to focusing on what could be set to get passed on,” she added.
The research discovered that 84 per cent 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 over 50 (57 per cent) said the cost of living crisis has also affected their ability to lend money to others in return.
Graham added that the figures also show the need to remain flexible and support borrowers at all stages of their life for the benefit of family members looking to get on by themselves is “more crucial than ever”.
“Our focus here at Hodge has always been to flex and respond to market pressures in a way that allows us to continue supporting our brokers and their customers in the moments that matter,” she concluded.
tom.dunstan@ft.com
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