7 Mar

Deposit amounts deter first-time buyers

Deposit amounts deter first-time buyers

Many first-time buyers are continuing to struggle to raise a deposit to enable them to become property owners.

Research from Santander Mortgages showed some are turning to their grandparents to help buy a home, with 32 per cent arranging a family loan to raise a deposit – 13 per cent increase compared to in 2011.

There has also been an increase in the proportion of deposit compared to salary to 32 per cent, with 19 per cent expecting to have to use half their annual income on a deposit.

“Despite having to use alternative income streams over and above their salary, such as relying on the Bank of Gran and Grandad, today’s first time buyers are demonstrating resilience and determination to achieve their home ownership goals,” said Miguel Sard, managing director of mortgages at Santander UK.

He added: “The purchase of a first property still remains high on the priority list for many people across the UK and it’s encouraging to see so many first-time buyers feeling positive about the year ahead.”ADNFCR-1222-ID-801833266-ADNFCR

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