If millennials are not able to access the so-called Bank of Mum and Dad, they might find solace in the Bank of Other People’s Mums and Dads.
Over a quarter (27 per cent) of parents and grandparents in the UK would consider funding other people’s children in their home ownership ambitions – in exchange for a return on their investment, of course.
The findings, from Legal & General, build on their previous research that found the Bank of Mum and Dad (or as it can be hilariously shortened to, BOMAD) will be the equivalent of a top 10 UK mortgage lender this year.
Around one in four of these nurturing investors would expect to receive a reward in the form of a loan repayment with interest, the study found.
This could be an innovative “sharing economy” solution to the aching gap between baby boomers’ grasp of the property ladder and young professionals’ out of reach stretches towards it.
However, there’s something to think about in all this. Banks can be a pain, but they will never apply emotional pressure in the same way families could – even if they’re someone else’s.