Research from life insurance and financial services company Prudential has revealed that on average, those who have lent money to their children or grandchildren are owed £12,700, and more than one in 10 (11 percent) of the Bank of Mum and Dad’s loans are for figures of more than £20,000.

The research also shows that in many cases the Bank of Mum and Dad doesn’t expect its loans to be repaid in full, with more than two in five (44 percent) parents who have lent money to their families admitting it is unlikely that they will ever see the full amount of money again.

However, the potential for significa...