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Bank of Gran and Grandad helps grandchildren buy first homes

Latest research from Saga reveals that a third of grandparents have given their grandchildren a financial boost to help them onto the property ladder.

It says the Bank of Gran and Grandad has donated a total of over £37bn in funds to their grandchildren and one in ten grandparents say this money was to be spent on a deposit for a house.

The generous donations look set to continue as the research from Saga shows that a further third of grandparents are still considering or intending to give a financial gift and one in 10 are considering lending money to grandchildren.

The typical donation from grandparents is £9,365, with those in London and the South East giving the largest deposits, although grandparents in Yorkshire are some of the most likely to gift to their grandchildren.

Grandparents say that they view the gifts as an early inheritance, with more than half saying that they would rather see their relative enjoy the money than wait to leave it as an inheritance.
Alex Edmans, head of product at Saga Money, commented: “Most of the money grandparents are gifting is coming from their cash savings, so whatever small amount of interest they are missing out on is clearly outweighed by the joy they get by seeing their grandchildren benefitting from the money.”

Saga Magazine has put together some tips for people considering lending or giving financial gifts to their family, for the full article please see www.saga.co.uk/magazine/money/personal-finance/giving/a-guide-to-giving-money-to-your-family