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 Scotlandfound.
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 Scotlandfound.
Almost half (48%) have loaned up to £500while7%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 borrowingmoney from their family members. In addition, 48% feel unhappy about it, as theywant toprovide 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 in10millennials 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 in10parents (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.
