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1 April 08 - Deposit Daunting For Home Buyers
Nearly one in four first-time buyers think they will have
to save for six years to set aside enough money for a housing
deposit, a survey shows.
According to high street bank Abbey, the average first-time
buyer takes three-and-a-half years to save a typical deposit
of £22,800 for a first home, but 23% think it will
take them at least six years.
Just 19% of people think they will be able to pull together
the money they need to get on to the property ladder in
a year.
First-time buyers have previously been able to take out
100% or even 125% mortgages, removing the need to save for
a deposit.
But since the credit crunch, all 125% deals have been pulled,
while only a handful of 100% loans remain.
Meanwhile lenders are asking for increasingly large deposits,
with some now demanding at least 10%, and others, such as
Nationwide, only offering their best rates to customers
borrowing 75% or less of the value of their property.
Nici Audhlam-Gardiner, director of Abbey Mortgages, said:
"Saving for a deposit is no easy task, especially with
the average needed now standing at more than £20,000.
"But in the current climate, having a deposit is necessary
to secure the most competitive mortgage rates."
News items supplied by SelectNews, produced by PA Business,
part of the group that owns The Press Association, the UK's
national news agency. Copyright (c) PA Business 2007.
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