Last post: Jan 4, 2018
With younger people struggling to fund everything from higher education to their first step on the property ladder, many parents are also starting to feel the financial pressure making guarantor loans a more realistic option than a loan from the “Bank of Mum & Dad”.
Banding
generalisations like "baby boomers" and "millennials" around
can be a dangerous game, riddled with stereotypes and recriminations.
But there is no denying that the younger adults of today are finding
"getting going" an awful lot more costly than their parents
brought up in the 60s.
From eye-watering tuition fees to
ever-climbing rents and the seeming inaccessibility of mortgages,
life is a real financial challenge for younger adults who must do
battle with high costs of living and stagnating wages.
Bank of Mum & Dad in trouble
Once upon a time (perhaps a decade ago) the Bank of Mum and Dad was often a viable option for younger people seeking finance to support their "launch" into adulthood. Whether it came in the form of a generous and informal loan, a lump sum to be used as a deposit or ongoing rent payments throughout university, many young adults were able to overcome steep costs and limited capital.
Today, however, even the Bank of Mum and Dad is feeling the strain. Although parents are still the 9th biggest lender in the UK, the mums and dads of today's young adults have not benefited so substantially from economic fluctuations and the financial challenges facing all generations are ever-more imposing.
Guarantor loans fill the breach
With the Bank of Mum and Dad strapped for cash itself, guarantor loans, secured by parents are increasingly filling the gap for young people keen to move forward with their lives. This trend is reflected in the ongoing rise of non-standard loans – with guarantor loans contributing significantly to this increase.
Are
you looking for a guarantor loan to suit your circumstances?
Find
out more about how guarantor loans work and talk to our finance
experts to get
started.
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