Typical Mum and Dad now fork out £24,100 towards off...

The Bank of Mum and Dad is now officially one of the 10 biggest mortgage lenders according to data from Legal & General.

In a report created jointly with research consultancy Cebr the company says that the average BoMaD contribution has risen by more than £6,000, to £24,100; this means parents will be gifting a total of £6.3 billion this year.

Well over half of BoMaD lenders who have or would consider helping family to purchase property said they are willing to because ‘it was a nice thing to do’ and almost another fifth said they feel it’s their personal responsibility to help out.

However, Legal & General says over-55s may well face a more uncertain retirement as a result - although it looks increasingly like equity release is becoming a favoured way of achieving both the offspring’s and the parents’ objectives of obtaining funds.

Some 16 per cent of BoMaD lenders have or would release equity and use that money to financially support their children or grandchildren.

More than a quarter would or have used their housing wealth to fund home renovations and nearly three in every five parents and grandparents are using it to free up cash to stay in their own home.

“The generosity of parents and grandparents is inspiring, but many are making big financial decisions without adequate planning or professional advice. Retirement is much longer, and much more varied, than it used to be. Informed choices in the run-up to, and at the start of, the retirement journey can make a huge difference when it comes to being able to fund the retirement people really want” explains L&G spokesman Chris Knight.