15 Jun 2016
Scottish parents have loaned out over half a billion pounds over the past year, according to new research.
A Bank of Scotland study, which looks at family debt, identified that the average Scot owes their parents £3,079.
It also found that people in Aberdeen were the 'most annoyed' at having to lend money to family.
With 28% concerned about their children’s ability to buy their own home, it is likely that most of this borrowing is going toward funding a deposit to purchase a new home.
The majority of people lending money to family members (52%) were positive about this and indicated they were happy to help out. However, over a fifth (21%) said that they don’t ever expect to be paid back.
Almost half of borrowers (44%) feel guilty about borrowing money from family members. Despite this, almost a tenth (9%) don’t ever expect to pay their family member back. High levels of family debt does not seem to have had a significant impact on family ties with only 8% believing it has caused tension.
Over 65s make up the biggest share of ‘Bank of Mum and Dad’ lending, contributing over 60% (£366million) to the £582million total.
The findings show that over a quarter (26%) of over 65’s are lending money to family members with the average loan to children totaling £4,022. A fifth (20%) of loans to children are for amounts over £10,000.
There are a number of regional variances within the research:
Highlands and Islands and Glasgow both felt the guiltiest about borrowing money (52%), Dundonians felt the least guilty (24%)
Nearly two fifths of Fifers (39%) don’t ever expect to get their money back when lending to family members
More Glaswegians don’t expect to pay their family back compared to anyone else (13%)
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