Research from Santander suggests that up to a quarter of potential first time buyers will be saving for a deposit for five years.
Over half of first time buyers (54 per cent) say they’ll be using savings as their deposit for their first home with the average time expected to save around 40 months. Around one in 10 (11 per cent) think they could save fast enough to accumulate their deposit in one year – that’s down from a fifth (19 per cent) three years ago.
It’s not surprising then that first time buyers are looking for opportunities to increase their income. Just over one in four (28 per cent) are now taking on second jobs or overtime to boost their deposit fund and another 27 per cent are hoping to boost their deposit by taking out a loan.
Phil Cliff, director of Santander Mortgages, commented: “Saving for a deposit is no easy task, especially in today’s financial climate, with many customers, especially in recent years, having to put down larger deposits to secure their mortgage. Santander is committed to lending its support to First Time Buyers which is why we’ve launched a range of 10 per cent deposit products to help them step on to the property ladder.”
Cliff continued; “Having a clear savings plan can help, and putting money into high interest saving accounts, like Santander’s First Home Saver, a savings account paying 5.00 per cent gross p.a./AER variable, can help people reach their target sooner than they might have expected.”
