The number of First Time Buyers taking out a mortgage reached an 11-year high in 2017, and with that figure looking to increase throughout 2018, saving for a deposit can be a challenging time. In this blog post, we’re taking a look at some of the most common ways in which people approach the task of raising enough funds to secure that first step on the property ladder.
The statistics cited, are from a recent survey from consumer advisory organisation Which.
First Time Buyers Spend A Long Time Saving
“When we surveyed over 700 first-time buyers in December 2017, we found that nearly half (46%) were putting down a deposit of 10%.
If you take the current Office for National Statistics (ONS) average property price of £237,794, this equates to £23,000 in cash – even without factoring in the other costs of buying a house.
On average, first-time buyers spend between three and four years actively building up a deposit, our survey showed. For many, however, the journey is much longer – a quarter spends more than five years saving.”
How People Save A Deposit
The savings needed to get that first step on the property ladder often involves a change of lifestyle for First-Time Buyers. According to Which’ survey, prospective buyers are willing to make significant lifestyle changes in order to bolster their savings. The below infographic illustrates some of the ways which First Time Buyers save that all important deposit.