Which? Mortgage advisors have conducted a study which has revealed that first time buyers need to save for up to a decade for a deposit in order to get on the property ladder. It was discovered that two thirds of the participants had to save for more than two years.
Which? Mortgage Advisors conducted a survey of in excess of 1,000 first time buyers. The feedback from this survey is that 69% of those asked have said that it took them more than two years to build up enough money to use for a deposit on their first home. 23% of those asked said that they were saving for between 5 and 10 years.
With lending being stricter since the economic crash, and an increase in the percentage of deposit needed to get a mortgage, first time buyers are struggling to reach the property ladder, let alone get on it. Named the ‘Genreation Renter’ this group struggle to save the funds it would require to put a deposit on a house.
With advice sometimes being to save as much as possible, so that the monthly payments for the mortgage are lower, it’s not hard to see that it could be easier for the generation of first time buyers to stay renting.
In order to address the struggle faced by people wanting to buy their first home, Which? has launched a new and free interactive tool that could help prospective first time buyers as they start thinking about saving for a house. The tool will allow the user to work out how long it would take to save up enough in order to buy their dream home.
The research also found that 29% were supported by ‘the bank of mum and dad’ and were able to get on to the property ladder due to contribution from parents. Another 8% were given financial help by other members of the family.