Boomerang children could be hampering some parents’ ability to obtain a remortgage, according to the latest UK housing market figures. An estimated 3.3 million children are currently living with their parents which is making it difficult for them to secure a possible remortgage on their home. The latest new rules governing lenders states applicants must list all occupants in the home at the time of application. Children occupying space in the home are counted as dependents, or individuals which the parents must financially support.

Lenders are governed by new rules which make it impossible at times for them to extend a remortgage to an applicant due to the financial strain of supporting their children. Even though the parents own the home, the children must be listed on the application as being fully dependent adults living in the home.

Children move back home or continue living at home into their thirties for various reasons. Some are saving for a deposit in order to grab a spot on the property ladder for the first time. Others are living at home and spending time choosing a suitable career track. Sometimes children are living at home in order to care for parents who could be disabled or need special assistance in some other way.

Nationwide, UK's biggest building society, commented on the new lending rules, saying: “Dependants must be taken into account... regardless of age - and any costs [to the parents] taken into account.

“This is a requirement of the MMR, and therefore is standard across the industry. If the adult living with their parent and does not have an income, they are dependent.”

Remortgage activity in general has heated up considerably since the announcement of the increase in base rate in the coming months.