The Khoo Family’s Journey to a Bigger Home
Rebecca Khoo is aspiring to relocate to a larger home with her family, but she finds herself relying on a loan of up to £100,000 from her mother to make this dream a reality. “Without my mum’s financial support, we would have to remain in our current home for at least the next five to ten years,” explains Rebecca, who juggles her roles as a carer and a cleaner. The 35-year-old resides in Singleton, a charming suburb of Ashford in Kent, along with her husband, a software engineer who works from home, and their six-year-old daughter.
“We purchased our current house in September 2022 for £370,000. Although it is a three-bedroom property, the smallest room is quite cramped, making it feel more like a two-bedroom home. We have a modest back garden that suffers from poor drainage, resulting in it becoming muddy and unusable for much of the year. Additionally, we are pet owners, caring for both a dog and a cat,” she shares.
This is the second home the Khoo family has owned; they previously bought a property in nearby Stanhope as first-time buyers in 2018, with financial assistance from both sets of their parents. Rebecca, having financed her university education through loans, utilized funds that had been set aside for her since birth to contribute to her house deposit. Her husband also received a substantial financial gift from his parents.
“Our first property appreciated significantly in value; we made about £70,000, which we poured into our current house to settle in Singleton, a much more appealing area. We also made the move to ensure our daughter could attend a nearby primary school that has an outstanding reputation,” she elaborates.
Aiming for More Space
Now regarded as “third-steppers,” the Khoos are eager to find a larger home to accommodate their growing family. However, with their finances stretched to the limit, this move is proving to be a daunting challenge. “Rising interest rates have increased our mortgage payments by an additional £600 a month compared to when we first moved. Utility bills for water and electricity have surged as well, making it difficult to manage our living expenses. We cannot afford outings to the cinema or dining out; our activities are limited to free options like walks or playground visits,” Rebecca states.
“Any extra money we manage to save goes towards purchasing a birthday present for our daughter.” They explored various mortgage and loan options but found them unfeasible. “We would be losing money and would not be able to maintain any quality of life. As it stands, we can barely afford any luxuries,” she adds.
Rebecca works four to five days a week, though her hours as a carer vary. “My hours aren’t consistent, but I don’t incur childcare costs since my daughter is at school during my working hours.” Despite her mother living nearby, she does not depend on her for childcare. “My mum leads a somewhat isolated life and has health issues. I prefer not to burden her,” she explains.
Having explored all other options, Rebecca’s mother, a retired teacher, has generously offered to lend the family the necessary funds on an interest-free basis. The plan is for the Khoos to repay her as they can. “Ideally, we need to borrow around £100,000, which would significantly ease our mortgage burden at the new home. While the initial amount is considerable, it would enable us to pay my mum back more quickly because of the favorable mortgage rate,” Rebecca notes.
“I have no clear timeline for repaying her; life is unpredictable. Thankfully, my mum is relaxed about it. She understands we will pay her back when we can, and as long as we have a steady income, she feels reassured.” The Khoo family has already discovered a five-bedroom property they adore, located just a few streets away. “It’s priced just under £500,000, which represents a significant leap in price. However, it offers so much more than just extra bedrooms; the overall space is much larger and feels perfect for our family,” she shares with excitement.
While Rebecca has two half-brothers, she is her mother’s only child. “Mum is on her own but comfortably owns her home without any mortgage or debts. Her house is similar in style and size to ours, so she is in a good position financially,” she explains. Her mother has access to two private pensions after taking early retirement due to health challenges but is not yet eligible for a state pension.
Making Sacrifices for Family
By providing the interest-free lump sum to Rebecca, her mother will need to make significant personal sacrifices. “She would have to forgo social activities and diminish her enjoyment of retirement. Without a car, she has to spend money on transportation. She has been saving for holidays, but that would have to be put on hold. Any home improvements would also need to wait, requiring her to live more frugally,” Rebecca reflects.
“This situation brings a sense of guilt for me. I acknowledge the reality we live in, and I must set aside my pride to accept help. It truly feels like a last resort, but we promise to repay every penny, albeit over an extended period, without any added interest, making it much more manageable for us.”
While it is common to hear about the “Bank of Mum and Dad” assisting first-time buyers, the soaring property prices, along with the rising costs of childcare and living expenses, mean that Rebecca is not alone in seeking familial financial support for second and third home purchases. According to data from Twenty7tec, a prominent adviser tech provider, parental contributions for existing homeowners have risen by 39 percent in the past five years, increasing from 2.19 percent in 2020 to 3.05 percent in 2025, highlighting the crucial role that family financial assistance plays even beyond initial property acquisitions.
In the same timeframe, average house prices have risen by 7 percent, from £251,500 to £268,000, while consumer prices have surged by 24 percent, further squeezing buyers’ budgets.
Rebecca’s mother’s willingness to help stems from a similar experience in her own life. “My grandparents provided financial assistance to my mother and her siblings at a young age to help them avoid inheritance tax. My granddad, an accountant, would gift each child money when he reached his 60s, enabling them to purchase larger homes or invest in their businesses. Mum greatly valued this support, especially after her split from my dad, as it allowed her to live independently with me,” Rebecca explains.
Rebecca is acutely aware of the inequalities that exist for those without such advantages. “I recognize that it’s not fair. Some individuals are born into more favorable circumstances. I am fortunate, and if the opportunity arises, I would like to extend similar support to my child. Life is a mixture of planning, effort, luck, and the family you’re born into. I strive to remain mindful of this reality and am truly grateful for my current position,” she concludes.
