Borrowing from the Bank of Mum and Dad has fallen sharply in the past year, as families adjust to new financial pressures caused by the pandemic.
The proportion of people who borrowed money from family and friends fell from 31 per cent in March 2019 to 22 per cent in the year to March 2020, according to research from Lloyds Banking Group. The number fell again to 13 per cent in June, after lockdown restrictions were imposed.
The share of those who lent money to loved ones halved, from two-fifths (40 per cent) in March 2019 to 19 per cent in June 2020.
Jo Harris, Lloyds Bank managing director, said the financial uncertainty experienced over the past year had been compounded by the pandemic, but this had effectively discouraged lending and borrowing between family members.
“Lockdown led to a reduction in spending, leaving some with more surplus cash each month,