Parents risk their financial future to help children buy home: Halifax

British parents who helped their adult children in getting on the property ladder are now concerned about their own financial future, according to a fresh report from mortgage lender Halifax.

The report said nearly four in every ten parents who helped their children to buy a house are now concerned about their own finances in their old age, including pension cash.

It explained that with a typical deposit around 31,000 pounds, parents with three children spent more nearly 100,000 pounds to make a down payment for each of them. But more than 90 per cent of those parents admitted didn't expect to get financial assistance from their children in return in case they required it for care costs.

Halifax's Craig McKinlay said that the expectation that parents would provide financial support to their children to buy their first property applied to all classes, not only the wealthy.

Sharing the survey report, McKinlay said, "This is becoming a universal expectation of all parents, not just the wealthy. More parents are dipping into their savings and don't envisage it being repaid, compromising their retirement funds."

Two thirds of homeowners in the age group of 20-45 years could only purchase their first property with the assistance of their parents, and nearly 45 per cent of parents surveyed by the mortgage lender said they paid towards a deposit, or expected to do so. The age at which people are purchasing their first property has been on the rise, thus many of the first-time buyers nowadays are in their thirties.

Parents are sacrificing their life-savings, giving their children an early inheritance and even downsizing their family home to generate cash to help their children buy their own home.