The Bank of Mum & Dad has been the lender of last resort for many since the financial crisis, but new research suggests it is now running into funding difficulties.
One in four parents say they can't afford to give their children even the slightest financial service assistance to help them on the property market.
This leaves many first-time buyers struggling to scrape together the 5% deposit they need to get on the property ladder via Help to Buy, according to new research conducted by Babies.co.uk and removals company TwoMenandaTruck.co.uk.
Most parents would love to help their children buy their first home, but many simply can't afford to, even though a 5% deposit on a £100,000 home bought would total just £5,000.
With rents and living costs rising, that target is still too difficult for many first-time buyers and their parents to meet.
Of those that could help, 10% said they would lend a sum between £1,000 and £5,000, 18% would lend between £5,000 and £10,000, and 16% would lend up to £50,000.
Yet the Bank of Mum and Dad retains a solid presence in the large loan market. The survey showed that 7% would lend up to £100,000, while a wealthy 12% would lend more than £100,000.
And the bank is still remarkably willing to lend, subject to circumstances, with only 3% of parents who can afford to offer finance refusing to do so.
The Bank of Mum & Dad needs to stress test its lending carefully, says Malcolm York, of TwoMenandaTruck.co.uk. "For those that can scrape together a deposit it's a great time to take the plunge, with low interest rates and reduced deposit requirements. We would encourage buyers to plan ahead to ensure they can still afford the repayments when rates eventually rise."
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