Almost two-fifths of first-time buyers (FTBs) say they would need more than three years to save a deposit for their first home, new research from Clydesdale and Yorkshire Banks reveals.
The banks’ Annual First Time Buyers Research found that nearly 40 per cent of people looking to get on the property ladder would have to wait that long to have enough in savings.
Almost half (46 per cent) of FTBs estimate it would take them between one and three years to save up for a deposit and 10 per cent of those polled said they would need more than five years.
The boomerang generation – those who have rented a property and then moved back to live with their parents – hope to see the benefit when it comes to saving a deposit with half planning to save the required funds within two years and all those surveyed aiming to reach their financial goal within four years.
In contrast, almost 30 per cent of those who are currently renting a property believe it will take more than four years to save a large enough deposit to buy their own home.
“We understand that saving a deposit can be one of the biggest challenges for first time buyers, particularly for those who already rent a property and have considerable monthly outgoings.
“This is why Clydesdale and Yorkshire Banks have remained committed to offering mortgages specifically for the market with competitive rates which need just a 5% deposit to help make owning a home a reality,” Steve Fletcher, retail banking director, at Clydesdale and Yorkshire, said.
