Years spent saving up for a first deposit

Wed, 23 Sep 2015

Years spent saving up for a first deposit
Deposits are one of the hardest aspects of home buying for a first time buyer. With no existing property under their ownership to sell to help boost them past this obstacle, having to save up for a deposit can take a very long time. Research has found that people are setting aside up to five years to try and save for their deposit.

The Annual First Time Buyers Research from Clydesdale and Yorkshire Banks discovered that 46 per cent of people are expecting to have to save up money for three years to save the cash, while 10 per cent had a more pessimistic expectation of five years.

Scotland seem to have the worst general outlook, as just under a quarter believe it will take them four years to save up enough for a deposit.

Those renting, are planning to have saved up enough for a deposit within four years, according to the research, which contrasts with those who have rented before, but ended up back living with their parents. Half of these first time buyers think that saving for a deposit will take them a comparatively short two years.

These years translate to a lot of time, and a lot waiting, until people can get onto the housing ladder. It will mean that the end of their mortgage will be further away, and they will be even older before they eventually own their eventual home.

Those with large monthly outgoings are, according to this research, expecting it to take the longest to be able to save up for a deposit, as do people living in Scotland.

The' target='_blank'>Help to Buy schemes allow people to become homeowners by negating a large portion of the deposit that they will have to save up, in some cases allowing lenders to offer as little as five per cent deposits, whereas 15-20 per cent of the property value is the norm.

Still, it is a controversial scheme that has helped 120,000 individuals, but has been argued to have lifted house prices in general, making it harder for everyone else to scrape together their deposits.
add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page

Copy and Paste the following HTML into your page.

Note: For a free no obligation chat with an independant mortgage specialist about your requirements please complete ourmortgage enquiry form below.

Mortgage, Remortgage or Buy-to-Let Mortgage Enquiry Form

Stop Press: Find the perfect mortgage!
Lending criteria has been relaxed and our specialists can find you great mortgage offers to compare.
Our team do all the work to find you the best offer
We'll help you find the best mortgage for your needs and ensure that everything runs as smoothly as possible.
Deposits required are again falling
The cost of the best deals has dropped recently for those borrowing either 80%, 85% or 90% of their property's value
Independent, searching the whole market
With 1000's of mortgage products available our mortgage brokers will source the mortgage that suits your situation.
Please complete this quick, free enquiry form.


Your Details

Home Buyer Guides

Home Buyer News

Speak with an independant mortgage specialist

About Company is part of the SFN Network of websites. Sitefinders Net Ltd is a U.K based company setup in 1995. Our core business is the development of online businesses using the generic domain name concept. We have a growing portfolio of websites in many different industries such as electronics, finance, retail, seasonal and health.

Privacy Policy

Get in Touch