However, the cost-of-living crisis has also affected the majority’s ability to lend money to others
Over three in five people relying on financial aid from their families are benefitting from funds sourced from their relative’s home equity, according to new research from Hodge.
A new study from Hodge found that 61% of people aged under 50 had been able to meet rising living costs with the help of relatives releasing funds against the value of their own property, with a quarter of those who had received financial support in this way using the funds to go and purchase a property of their own.
Hodge questioned 1,240 people aged between 16 and 80-plus, and found that the vast majority, or 84%, of people aged under 50 claim to need financial support from family to help them with the cost-of-living crisis. More than half of those aged over 50, or 57%, said the crisis has also affected their ability to lend money to others in return.
“What these figures show us is that families are moving into a different era financially and starting to focus much more heavily on pooling their monetary resources,” commented Emma Graham (pictured), business development director for mortgages at Hodge.
“There is a progression now, it would seem, towards meeting the challenges presented by the cost-of-living crisis as a united family unit, and looking at what can be drawn down from assets the previous generation has amassed in order to support their children or grandchildren now, as opposed to focusing on what could be set to get passed on.”
Graham pointed out that Hodge itself has made a series of significant enhancements to its later life mortgage products to support older borrowers facing affordability issues in recent months. The specialist lender, she added, has also announced reductions across both its 50-plus and RIO mortgage range of products.
“The need to remain flexible and support borrowers at all stages of their life for the benefit of family members looking to get on themselves is more crucial than ever,” Graham continued.
“Our focus here at Hodge has always been to flex and respond to market pressures in a way that allows us to continue supporting our brokers and their customers in the moments that matter, and we’re working harder than ever in light of this research to make sure that continues.”
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