Scotland business

Survey finds rise in 'bank of mum and dad' lending

£20 note in piggy bank Image copyright PA

The average loan young Scots are taking out with their parents has risen steeply to nearly £4,000, according to a survey.

Last year, the so-called "bank of mum and dad" loaned 29% more money to their offspring, compared with 2015.

The Bank of Scotland report found more children aged 18-24 were borrowing from their parents, but numbers were down in the 25-34 age bracket.

The survey covered 2,000 young adults in Scotland.

The analysis also found Glaswegians were most likely to borrow money from their parents than offspring in any other region (28%), followed by Aberdeen (24%), north east Scotland and the Lothians (both 19%).

The number of those borrowing from parents remained at 18% in 2015 and 2016, but the actual size of the loan changed substantially.

Image copyright PA

Rachel Bright, from Bank of Scotland, said: "It's interesting to see the shift in size of loan being given to children by bank of mum and dad over the year.

"Fewer parents are lending smaller amounts of up to £1,000, yet more are now providing quite substantial loans to children of £3,000 or more.

"It's very possible that this is parents helping their children with education costs or getting on the property ladder."

Parents lending more than £10,000 increased by almost a quarter, but only those aged 45 and over loaned such high amounts.

The research also found half of those quizzed felt guilty about borrowing from their family, up from 44% last year, while those aged between 45 and 54 felt the most guilty (58%).

Despite feeling guilty, only 34% of respondents said they expected to have to pay the money back to the family member.

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