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‘Desperate FTBs digging deep for deposits’
Almost one-third of aspiring homeowners have taken second jobs or were working overtime to raise a deposit for their first home, research by Santander Mortgages has found.
The data showed 27 per cent of aspiring homeowners were prepared to take out a personal loan to raise the money, compared with just 4 per cent 12.5 years ago.
According to the research, one-third of all non-homeowners believed they will never own a property, while about one in four current non-homeowners are hoping to buy within the next five years.
Phil Cliff, director of Santander Mortgages, said: “The housing market is a tough place, particularly for first-time buyers. With property prices averaging more than £200,000, it is no wonder people are becoming increasingly resourceful when it comes to raising a deposit.
“Despite a stagnant housing market, the mortgage market is competitive which is why it is vital that people shop around to ensure they are getting the best possible mortgage deal.”
The research showed savings remain the most popular way of funding a deposit with more than half of hopeful first-time buyers planning to save enough within the next five years.
Andrew Beer, director of Cambridgeshire-based Lime Tree Financial Services, said: “Generally we agree with the findings and it is indeed very difficult for the first-time buyers to finance their deposit.
“Our business has seen a big increase in the inheritance money paying for the deposit this year, at almost 25 per cent. Savings account for about 20 per cent.”
