In light of the recent changes to mortgage eligibility, which will see first time buyers facing more questions about their lifestyle and spending habits, there has been a 67 per cent decrease in the number of people considering buying their first property, according to a money saving website.
The survey was carried out by www.VoucherCodesPro.co.uk as part of ongoing research into the spending habits of Britons to see just how people spend their disposable income.
The study saw 2,187 British citizens (1,133 men and 1,054 women) participate and answer questions about their lifestyle. All respondents were in full time employment at the time of the poll and had been on the same salary for the last six months. None of the respondents had children and everyone taking part was renting a property, rather than being a homeowner.
Lifestyle and spending habits led 48 per cent of respondents to believe that they would not be desirable mortgage applicants following the changes.
A third of the total respondents (34 per cent) said that they were considering buying their first home and applying for a mortgage before the changes were announced last week regarding tougher questions about spending.
However, just 11 per cent said that they were still considering applying for a mortgage and looking for a home since the changes were announced; suggesting a 67 per cent decrease in the number of people looking to become first time buyers.
The poll then looked at disposable income. When asked how much disposable income they had left each month after all essential bills had been paid (essential bills to include utility bills, groceries, fuel/transport costs, council tax, rent, childcare, TV/landline/internet), the average answer stated by the women polled was £210.00; compared to £196.00 for men.
The men and women taking part in the poll were asked what they spent their disposable income on during a typical month (and told to assign a percentage of their disposable income next to each item on the list), which revealed the average breakdown to be as follows:
Men
Leisure/social occasions (cinema, tickets etc. ) – 31%
Alcohol – 21%
Gym membership/fitness – 19%
Mobile phone bill – 15%
Eating out/takeaway – 6%
Clothing/footwear/accessories – 3%
Hobbies (collecting/reading/baking etc.) – 2%
Gifts for others – 1%
Savings – 1%
Other – 1%
Women
Clothing/footwear/accessories – 27%
Mobile phone bill – 19%
Leisure/social occasions (cinema, tickets etc. ) – 17%
Eating out/takeaway – 10%
Alcohol – 9%
Gifts for others – 5%
Gym membership/fitness – 5%
Savings – 4%
Hobbies (collecting/reading/baking etc.) – 3%
Other – 1%
George Charles, financial expert at VoucherCodesPro.co.uk, said the following: “The most surprising part of this poll for us was finding out just how much disposable income the average man and woman around the UK now has each month; which averaged around the £200 mark. This is a decent chunk of money. However, with the recent changes meaning that those looking to buy a home will face tougher questions and a bit of an interrogation about their lifestyle spend, the results are worrying. People have clearly been put off applying for a mortgage or considering buying a first home following these changes.
“On average, men put just 1 per cent of their disposable income away into savings for a rainy day, with women saving slightly more, at 4 per cent of their total disposable income. If you ask me, for people to stand a chance of being approved for a mortgage, this needs to be flipped on its head with more money ready for a rainy day.”
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