T
he common first-time home purchaser London has needed to up the quantity they’ve wanted to save lots of for a deposit by greater than £13,000 since they began saving, based on a brand new survey .
A survey of 1001 potential home buyers discovered that first-time buyers in London at the moment are aiming to save lots of £38,895 for a deposit. The respondents stated that this was £13,066, or 50%, greater than their preliminary goal once they began saving.
Both figures have been increased than the UK common. Across the country , the quantity patrons have been saving for deposits had elevated by £11,500.
With rates of interest rising, patrons – particularly these with a shorter credit score historical past – are needing to place down greater deposits with a view to hold their month-to-month funds manageable.
A 3rd of potential owners stated that saving sufficient for a deposit was the largest barrier to getting on the housing ladder.
Ben Thompson, deputy CEO on the Mortgage Advice Bureau, stated: “There are many challenges for prospective buyers to overcome before they get the keys in their hands, and right now, they’re coming from all sides.
“Economic volatility has seen prospective buyers battle high inflation, pushing prices up and limiting the amount they can save. Meanwhile, higher interest rates have lowered the amount they can borrow, meaning bigger deposits are needed. This has led to many prospective buyers having to put more away than they had initially planned.
“Nevertheless, there are some positives that can be taken from this. For those saving for a mortgage, it’s time to take advantage of higher interest rates on savings, with fixed rate accounts in particular offering good rates. Government initiatives, like the Lifetime ISA and Help to Buy ISA (for those who had an account before the scheme closed) can also help. Whatever stage you are at, it’s worth talking to a broker who can help you get mortgage ready.”
