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First time buyers unable to save enough for their first home
First time buyers unable to save enough for their first home
According to Yorkshire Building Society, savers face an eight-year wait trying to save enough deposit required to buy their first home.
Dartford,
Kent,
United Kingdom
(prbd.net)
31/10/2012
According to Yorkshire Building Society, savers face an eight-year wait trying to save enough deposit required to buy their first home.
The average aspiring property owner manages to save £248 per month and the average house price for a first home is £131,250. It could take up to 8 and a half years to put aside the 20% required to secure a mortgage offer if banks continue impose strict lending criteria on borrowers.
Yorkshire Building Society based their findings on those putting money into an easy access account with a 1.25% interest rate to save the average deposit of £26,000.
Over 50% of those surveyed said that saving for a deposit to enable them to get on the property ladder was the hardest challenge they faced. However, it did differ between regions, with buyers in the North East, Yorkshire and the North West having to save £15,000 deposit whilst those in London needed more than £60,000 making it virtually impossible for people to save for their first home.
2,000 people were surveyed in the report.
Since the £80bn Funding for Lending scheme was launched, mortgage availability has improved, but the biggest rate drop has been for those with a deposit of 40% or more, doing nothing to help first time buyers unable to save enough even for a 20% deposit.
As a result of the difficulty in obtaining lending, rents have been pushed up and buy to let investors have benefitted hugely.
The survey found that the 'bank of mum and dad' has played a pivotal role in helping people get onto the property ladder. 17% of people who bought their first home in the last 12 months had help from their parents compared to 13% f people who bought a home in 2007.
Notes to Editors
Paul Ribbons runs the Paul Ribbons Partnership and has a unique and very lucrative strategy that has helped him, and his delegates, in making money from property. To find out how click here. Paul has been involved in over 500 below market value (BMV) deals and offers property investment advice. He has a simple and effective strategy of buying property from the open market, distressing them and reselling them at auction for profit. Everyone can do it, and in his book and via his courses, he tells the story of how he came across his simple formula of making money. To find out how to profit from property click here.
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About
Paul Ribbons runs the Ribbons Partnership and has a unique and very lucrative strategy that has helped him, and his delegates, in making money from property. He has been involved in over 500 below market value (BMV) deals.
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