Parents could find they are no longer able to use their home as a cash machine for the kids as lenders become more reluctant to allow homeowners to gear up against their properties. Sunday Times

While lenders are still allowing existing homeowners to release equity, you risk higher repayments if you borrow more than 75%.

Lenders such as Halifax charge up to 0.90% more on loans for those with 5% equity, as opposed to those with 25%, amounting to an extra £2,250 a year on a £250,000 loan.

Melanie Bien of broker Savills Private Finance said: 'Traditionally parents thought if they had significant equity in their home it was okay to take out more. Now, with banks cutting the maximum loan available on some deals to 90% and offering significantly cheaper rates for those with 25% equity, parents want to make sure they don’t penalise themselves.'