£12.7k in debt to mum & dad

YOUNG adults owe an average £12,700 to their parents and grandparents.

Around 11% owe more than £20,000 and some 44% of parents do not expect the loans to ever be repaid in full, according to a study by the Prudential.

Reasons include soaring property prices, tighter rules on bank lending and student loan debts.

Prudential’s Stan Russell said: “In many cases this support ends up being gifts rather than loans from the Bank of Mum and Dad.”