We share our tips on how to help your grandkids get on the home front — plus get a free fiver from our rewards club

DON’T bother with the bank of Mum and Dad if you’re trying to get on the housing ladder – it’s now the bank of Gran and Grandad you need.

Research out this week reveals that for the first time ever, more grandparents than parents are helping young buyers to make their first property move.

The study among estate agents showed that 34 per cent have seen a rise in first-time buyers being helped by grandparents, compared with 26 per cent who report an increase in parents helping out children.

Around a fifth of first-time buyers are being helped by both their parents and grandparents.
So if you’re a grandparent thinking about assisting the grandkids, what’s the best way to do it?

Alex Edmans, from finance website Saga Money, says: “Most of the money grandparents are gifting is coming from their cash savings, so whatever small amount of interest they are missing out on is clearly outweighed by the joy they get by seeing their grandchildren benefitting from the money.”

Here are Saga’s seven top tips if you want to help your grandkids on the home front — saving money and maybe a whole lot of hassle.

1.  Make sure you are secure and have enough money to fund your retirement and future care needs before you choose to assist others financially.
2.  Is the money a gift or a loan? Decide which it is, as it can make a big difference in the long run.
3. Make sure the terms of the gift or loan are clear, particularly if you only want it to be spent on a home deposit.
4.  In the case of a loan, consider setting up a formal agreement about how and when it will be paid back. You may want to consult a solicitor.
5.  Giving relatives an early inheritance can be Inheritance Tax efficient, but look into the options as to how much you can give before becoming liable for taxation.
6.  Gifting could affect your own or your grandchild’s entitlement to benefits, particularly if you might need long-term care in later life.
   Gifts could be regarded as a “deliberate deprivation of assets”, which means taking cash out of your estate to ensure you qualify for means-tested benefits.
   It’s best to take advice to ensure you do not fall foul of the regulations.
7.  Many people take equity built up in their home to gift money to grandchildren.
   But take advice before you do, as the “deprivation of assets” rule may still apply and there may be a cheaper way to find the money.
   It is also important to discuss this option with your family, so they know what you are thinking of doing.