Is the Bank of Brother and Sister the new Bank of Mum and Dad?

The Bank of Brother and Sister may be just as generous as the Bank of Mum and Dad, according to research from Bank of Scotland.

Related topics:  Finance News
Rozi Jones
22nd March 2018
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"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."

Its research found that Scottish siblings have loaned a total of £616m to their brothers and sisters. Almost half (48%) have loaned up to £500 but almost one in ten (7%) have loaned over £10,000.

This compares to the £1.9bn loaned from parents, with 16% of parent lenders loaning over £10,000 to their children.

25% of parents are happy to help their children with the cost of buying a house, and almost a quarter of Scots (22%) have borrowed a substantial amount of money from their parents.

Interestingly, only 3% of Scots have borrowed a substantial amount of money from their grandparents. This could be because they feel embarrassed about making the request, as almost half of borrowers (47%) feel guilty about borrowing money from their family members.

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.”

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