Nearly two thirds (62%) of young homeowners who bought their first property with the help of Bank of Mum and Dad say they feel pressure to stay geographically close to their parents because of the help they received.
Close to half (46%) of Bank of Mum and Dad homeowners said receiving financial support from their parents had affected their relationships with friends, with nearly a third (31%) saying they had fallen out with a friend over it.
Asked whether they have ever felt the need to conceal how much their parents helped with their house purchase for fear of being judged, a significant majority (64%) said they feel the need to do this.
Despite receiving financial help, more than a quarter of respondents (27%) said they still had to rely on credit cards for living costs, and just under a quarter (23%) said they had taken out a personal loan.
Parents with interest
Nearly two thirds (62%) of homeowners under the age of 35 who bought their first property with the help of Bank of Mum and Dad said they felt pressure to stay geographically close to their parents because of the help they received.
A similarly large 67% said they also feel less able to push back against their parents in disagreements because of the help they received.
More than a fifth (22%) said their parents visit them more often as a direct result of the financial help they gave them, while a smaller proportion (17%) said their parents had a say in which home they chose and continue to have a say on any significant home improvements.
Despite the strings attached, three quarters (75%) of homeowners said they worry about how the financial support they received could affect their parents’ retirement security.
The potential re-shaping of relationships
More than two thirds (69%) of homeowners said they felt grateful for the help they received from parents when buying their first property, and more than half (52%) said they felt lucky. A minority said they felt guilty (16%), secretive (8%) and indebted (17%).
But asked whether they have ever felt the need to conceal how much their parents helped with their house purchase for fear of being judged, a resounding 64% said they often or sometimes feel the need to do this.
Nearly half (46%) of Bank of Mum and Dad homeowners said receiving financial support from their parents had affected their relationships with their friends, with nearly a third (31%) saying they had fallen out with a friend over it.
How Britain's secret mortgage lender is helping out
Nearly a fifth (18%) of respondents said they received between £10,000 and £20,000 from Britain’s secret mortgage lender. More than one in ten (13%) said they received between £20,000 and £30,000, and another one in ten (10%) said they had received between £50,000 and £60,000.
Nearly a third of homeowners (30%) still rely on Bank of Mum and Dad
The help doesn’t stop at respondents’ current homes. More than a third (38%) of Bank of Mum and Dad beneficiaries said they plan to use financial support from their parents to buy their next home – in addition to their current one.
Most of the money homeowners received was cash for a deposit (43%), followed by cash for legal and mortgage arrangement fees or building work (39%) and furniture (38%).
Nearly a third (32%) used their parents as guarantors, and nearly a quarter (24%) said they received a loan for a deposit – meaning their parents were expecting them to pay back what they received.
Close to a third (30%) of those who received help from parents to buy their first home continue to receive financial help in order to fund the upkeep of their homes. The most popular reason for ongoing financial help is maintenance (30%), followed by renovations (27%) and mortgage repayments (26%).
After moving into their home, respondents said they received an additional £2,204 on average from their parents to fund further ongoing costs.
Asides from ongoing family help, more than a quarter of respondents said they rely on credit cards (27%) for living costs, and just under a quarter (23%) have taken out a personal loan. The vast majority (72%) fund all ongoing costs from their regular income and savings.
Ele Clark is an award-winning editor who has held leadership roles at Which? and news-stand publications in London and Dubai. She’s appeared across the press and media, including BBC’s Panorama. With almost 20 years’ experience in personal finance, insurance and consumer journalism, she leads a talented team at Compare the Market, creating insightful, accessible content to help people make informed financial decisions.
Sajni is passionate about finding money products to help you make great financial decisions. She keeps track of the latest trends and evolving markets to find new ways to help you save money.
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What our expert says...
“For many first-time buyers, help from the Bank of Mum and Dad can be the difference between getting on the property ladder or missing out altogether - but these findings show that the support often comes with emotional and practical trade-offs.
“What’s striking is that financial help doesn’t always mean financial security. More than a quarter of respondents still relied on credit cards for everyday living costs, and many took out personal loans on top of their mortgage. It’s so important that those buyers relying on these products shop around for competitive mortgage deals and credit cards. Even small differences in rates can add up over time.”