The “bank of mum and dad” is a major Scottish lender, a report has revealed, with more than half a billion loaned out to family members by parents.
The average Scot owes their parents £3,079, according to Bank of Scotland’s latest How Scotland Lives research, with a fifth of loans to children totalling more than £10,000.
Almost half of borrowers feel guilty about borrowing money from family members.
Despite this, almost a tenth never expect to pay their family member back. Meanwhile, the majority of people lending money to family members were positive about doing so and indicated they were happy to help out. However, more than a fifth said that they do not ever expect to be paid back.
Those in the Highlands and Islands said they felt most guilty about borrowing cash, with 53 per cent admitting remorse, while less than a quarter of Dundonians said they felt bad about taking money from parents temporarily.
Nearly two fifths of Fifers never expect to get their money back, while Aberdonians are the most annoyed at having to loan money to family members, with 24 per cent saying this has had an impact on their own life.
Fifers were the least annoyed, with just three per cent saying their children’s borrowing bothered them.
Despite this, high levels of family debt do not seem to have had a significant impact on family ties with only eight per cent, Scotland-wide, saying it has caused tension.
The majority of loans go to help children buy their own home, while more than a quarter of parents said they were concerned about their kids’ ability to buy a property.
Nicola Noble, Bank of Scotland mortgage director, said, “It’s great to see Scottish families being in a position to help each other out financially, especially for major life events like buying a new home.
“It’s also not surprising that baby boomers are playing such a major part in this.
“This generation is the wealthiest of all the generations and with last year’s pension freedoms giving them even greater access to pension savings, they are very well placed to help their family out in times of need.”