Young people rely on parents for loan guarantees

By Sarah Engle, Wed 17 Sep 2008 - Published in Loans

Twenty-somethings are increasing relying on the 'bank of mum and dad', research from a price comparison website has claimed.

A poll by moneysupermarket.com discovered that 23 per cent of young people in the 20s have used the parents as a guarantor when applying for loans.

Tim Moss, head of loans at the website, commented: "The tightening of lending criteria across the board has meant it's becoming difficult to even get a credit card or a loan, never mind access the most competitive rate on a mortgage."

He suggested that young people are among the most vulnerable in the current economic climate, as they tend not to own their own property and could have missed credit card or mobile phone payments, affecting their credit rating.

The findings are revealed that across all ages 11 per cent of people have needed their parents as guarantors when applying for loans.

Recently, Saga advised young people at university to ensure they take out insurance, as one in three students are the victim of crime each year.

News Categories

News Archive

News: Young people rely on parents for loan guarantees