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Grandparents assist first-time buyers, CreditExpert says

07 September 2007
Many British grandparents are providing financial assistance to help their grandchildren on to the property ladder, research suggests.

A study by CreditExpert has found that 31 per cent of grandparents are assisting first-time buyers with 11 per cent explaining their concern that the child's parents cannot provide adequate financial support.

The survey of 547 British grandparents over the age of 40 found that 26 per cent of them put money aside despite not working, whereas today's parents are considered to be restricted by more credit commitments.

CreditExpert managing director Jim Hodgkins commented that grandparents are filling "the financial void of the credit generation".

The effects of mortgages, loans and credit agreements are tying up the bank of Mum and Dad, while through financial assistance to first-time buyers, grandparents are responding to "one of the defining struggles young people face in today's society", he added.

However, recent research by Scottish Widows suggests that not all grandparents have money to float.

Around 20 per cent of retired homeowners were found to have an outstanding mortgage with an average debt of £38,000.

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