An estimated 1.9 million parents over the age of 50 either have or would consider taking out equity release to help their children get on the property ladder, according to research from financial services mutual, OneFamily.

Conducted by Opinium on behalf of OneFamily, the study comes at a time where many people are concerned about high living costs, and how this affects their children.

The survey was based on 2,000 over-50s and suggested that the average amount of money people either had already, or would be willing to take out on their home for this purpose, was £52,000.

Of those with children who rent, two in five (41%) said the cost of living crisis means their children can’t afford to save a deposit for a mortgage. Meanwhile, 24% think renting is “money down the drain” while 20% worry their child won’t be able to meet their daily living expenses due to high rent costs.

Out of those surveyed, 93% owned their own home either outright or with a mortgage. Of those who have children 64% said they either already have or would consider giving money to help them put down a deposit to purchase a property.

“It’s becoming increasingly difficult for first-time buyers to get their foot on the property ladder, and many parents want to help where they can,” said head of customer service and direct sales at OneFamily, Jackie Davies.

“With savings in the Bank of Mum and Dad now often depleted by the cost of living crisis, parents are turning to equity release to help their children.

“Equity release isn’t right for everyone, but in some circumstances, lifetime mortgages can help people free up cash held within a property for a number of purposes, whether that’s home improvements for yourself or gifting to loved ones. It can be used to help family members buy a home of their own, and even allow them to put down a higher deposit to then have lower mortgage rates.

“For those considering equity release, speaking to a specialist adviser such as OneFamily advice should always be the first step in understanding whether it can be right for them.”

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