Parents of more than half a million graduates became mortgage lenders to help their children become first-time buyers over the last five years, according to a new survey.
Scottish Widows Bank found that one graduate in three had financial assistance from parents to help them become first-time buyers.
This is despite the fact that a quarter of those who graduated within the last two years live rent-free with their parents.
Almost ten per cent of graduates who completed their studies five years ago also still live with their parents without paying rent.
With house prices at "historically high levels", the "ongoing struggle" by graduates trying to become first-time buyers is not easing, according to Murdo McHardy, head of product development and marketing at Scottish Widows.
"Even those graduates that have been working for several years are forced to borrow money from their friends and family," he points out.
Those who are trying to become first-time buyers are being urged to shop around for the best mortgage deal.
"Don't just look at the headline rate, but also overall fees and charges, which can vary a lot from lender to lender," is the advice from Joe Wiggins, media relations executive of Abbey.
The editor of Moneywise magazine, Emma-Lou Montgomery, adds that people should consider which mortgage will work the best for them.
"With so many mortgages on offer – fixed-rate, capped, discounted, tracker, etcetera – you need to work out which one suits you, and your circumstances, best," she says.
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