Latest News

First-time buyers face 10-year wait

13th September 2012

 

Nearly half of prospective first-time buyers think it will take them 10 years to save for a deposit, new research has shown.

'The sheer size of the deposit is the most daunting thing for would-be first-time buyers,' said one mortgage executive 

Most believe that they will get onto the first rung of the housing ladder at 35 years old. This compares with those in the early 1960s who were 24 years old on average when they bought their first home. Between 2005 and 2009 the average age of a purchaser was 30, according to Post Office mortgages, which carried out the research.

The biggest barrier first-time buyers face is raising a deposit. Some also fear that they will not be able to afford the mortgage repayments. This is perhaps an unfounded worry as, on average, renters pay £876 more a year than the average homeowner with mortgage payments and mortgage rates are historically low.

John Willcock, the head of Post Office mortgages, said: "The average age of a first-time buyer has been creeping up over the past 50 years and a perceived 10-year wait to raise a deposit doesn't help matters.

"The sheer size of the deposit is the most daunting thing for would-be first-time buyers, but it appears to be worth the wait if it works out cheaper than renting."

Source:  Telegraph 11/9/12