15 years to save a deposit?
Friday, September 26, 2008
A survey has found that it could take first time buyers 15 years to save enough money to put a deposit down on their first home...
A study from Fairinvestment.co.uk has discovered that it could take first-time buyers 15 years on average to save a deposit for their first home.
According to the Halifax, the average house price currently stands at £174,178. Fifteen percent of this is £26,127 and with the average amount of £139 being saved each month, this equates an annual total of £1,668, taking approximately 15 years to save the amount required.
To support this theory, research from mform.co.uk earlier this week, established that first-time buyers looking to borrow more than 90 per cent of a property's value will struggle to obtain a mortgage.
The online mortgage company found that mortgages for first-time buyers without a sizeable deposit are becoming scarcer with only Abbey and Halifax offering 95 per cent loan-to-value (LTV) mortgage deals.
The majority of lenders require a deposit of 20 per cent for many best buy mortgages, which is the equivalent of £37,000 on the average property.
However, borrowers would also have to pay an arrangement fee of around £1,000, according to mform.co.uk.
Fairinvestment.co.uk's survey of over 2,000 also found that women would take longer to save the amount than men as, on average women save just £121 each month, meaning it could take 18 years to save the amount required. Meanwhile, the average man would save £185 each month, meaning it would take just under 12 years to save a deposit.
Sharon Bratley, Fairinvestment.co.uk's Chartered Financial Planner, said the news is shocking but considering the state of the housing and mortgage market currently, it is no real surprise.
Ms Bratley added that without hefty savings or generous parents, first-time buyers will find it extremely hard to get a foot onto the property ladder.
Fairinvestment.co.uk recommends starting saving as early as possible and advises consumers to shop around for the best high interest savings accounts.
Friday, September 26, 2008
A survey has found that it could take first time buyers 15 years to save enough money to put a deposit down on their first home...
A study from Fairinvestment.co.uk has discovered that it could take first-time buyers 15 years on average to save a deposit for their first home.
According to the Halifax, the average house price currently stands at £174,178. Fifteen percent of this is £26,127 and with the average amount of £139 being saved each month, this equates an annual total of £1,668, taking approximately 15 years to save the amount required.
To support this theory, research from mform.co.uk earlier this week, established that first-time buyers looking to borrow more than 90 per cent of a property's value will struggle to obtain a mortgage.
The online mortgage company found that mortgages for first-time buyers without a sizeable deposit are becoming scarcer with only Abbey and Halifax offering 95 per cent loan-to-value (LTV) mortgage deals.
The majority of lenders require a deposit of 20 per cent for many best buy mortgages, which is the equivalent of £37,000 on the average property.
However, borrowers would also have to pay an arrangement fee of around £1,000, according to mform.co.uk.
Fairinvestment.co.uk's survey of over 2,000 also found that women would take longer to save the amount than men as, on average women save just £121 each month, meaning it could take 18 years to save the amount required. Meanwhile, the average man would save £185 each month, meaning it would take just under 12 years to save a deposit.
Sharon Bratley, Fairinvestment.co.uk's Chartered Financial Planner, said the news is shocking but considering the state of the housing and mortgage market currently, it is no real surprise.
Ms Bratley added that without hefty savings or generous parents, first-time buyers will find it extremely hard to get a foot onto the property ladder.
Fairinvestment.co.uk recommends starting saving as early as possible and advises consumers to shop around for the best high interest savings accounts.
posted by tony at 10:04 PM
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