The Bank of Brother and Sister may be just as generous as the Bank of Mum and Dad
The Bank of Brother and Sister may be just as generous as the Bank of Mum and Dad,with Scots loaning over £616m to their siblings, the Bank of Scotland found.
Almost half (48%) have loaned up to £500 while 7% have loaned over £10,000 to a brother or sister.
Ricky Diggins, network director for Bank of Scotland, said: “With Scottish siblings loaning substantial amounts of money to their family, it’s encouraging that such a high percentage of borrowers expect to pay their family back
“To avoid any potential tension, it can be helpful to agree at the time of receiving the money if it’s a gift or if and when the money should be paid back.”
Only 3% of Scots have borrowed a substantial amount of money from their grandparents. This could be because almost half of borrowers (47%) feel guilty about borrowing money from their family members. In addition, 48% feel unhappy about it, as they want to provide for themselves.
Meanwhile just under 600,000 (57%) are pleased to lend money to family members to help them out.
And although Scots continue to borrow from their family, 37% expected that they will have to pay them back.
Over a fifth of Scottish borrowers (21%) said they feel comfortable borrowing money from their family and almost a quarter of Scots (22%) revealed they have borrowed a substantial amount of money from their parents.
Millennials are most likely to borrow from their parents, as over four in 10 millennials aged 25-34 (40%) and 18-24 year olds (41%) admitted to borrowing a substantial amount from the Bank of Mum and Dad.
Scottish parents have loaned over £1.9bn to their children, with almost a fifth (16%) of parent lenders loaning over £10,000 to their children.
Borrowing small amounts is common too, as nearly a quarter (23%) of Scottish parents who have loaned money to their children giving them up to £500.
With people borrowing from Mum and Dad becoming the norm, one in 10 parents (10%) have always expected they’d need to lend money to family members, and have prepared accordingly.
Nearly one sixth of Scottish parents (15%) believe their children will need substantial financial support from their family to buy their own home. A quarter of parents (25%) are happy to help their children with the cost of buying a house.
A quarter of Scottish parents (22%) are also happy to help their children with the cost of university. Of those planning to attend university, 15% plan to fund their studies using money from their family.