Saving for home deposit can take up to a decade

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FIRST-time buyers are taking up to a decade to save for a deposit on a home, a new survey shows.

Research by the consumer group Which? found that a quarter of first-time buyers had to save for five to 10 years for their deposit. Of the 1,000 first-time buyers it surveyed, 69 per cent said it took them more than two years to build up their deposit.

Three in 10 of those surveyed said they had received financial contributions from their parents towards their deposit. A further eight per cent were given financial help from other members of their family.

The latest figures from the Council of Mortgage Lenders show that those buying their first home borrowed on average £132,400, or 84.3 per cent of their home’s value. This would mean paying a deposit of around £25,000.

David Blake, principal advisor of Which? Mortgage Advisors said: “Our research reveals the real difficulty that first-time buyers have in saving enough money for a deposit.

“Given how hard it can be to get onto the property ladder, ensuring you have the right mortgage could not be more important. Seeking independent mortgage advice early on is vital in order to know what options are open to you.”

Which? has recently launched a new interactive tool to enable first-time buyers to work out how long it will take them to save enough to buy a home.

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Written by: Houseladder