15 Years for First-Time Buyer Loan
It looks as though more first-time buyers are going to have to take better control of their debt management, as new research suggests that it could be 15 years before a first-time buyer loan agreement is reached, due to the time it takes to save for a deposit.
A poll by the Fair Investment Company revealed that the average first-time buyer only saves £1,668 a year. House prices are now at an average of £175,000 and many mortgage lenders are now looking for a 15% deposit.
Sharon Bratley, a chartered financial planner with Fair Investment Company, said: “My advice to prospective first time buyers is to save, save, save, our research shows that it could take years, so the earlier you start the better. It is also worth shopping around for a high interest savings accounts.”
The research also found that women would normally take longer to save for a deposit than men, with the average woman saving just £121 per month. However, if a male and female couple combined their savings, they could achieve a 15% deposit in just seven years.
