You are here: Home - Mortgages - First Time Buyer - News -

First-time buyers use “drastic” measures to get on the property ladder

Written by: Paloma Kubiak
More than 250,000 people bought their first property last year, but mortgage advisers have revealed the lengths they went to secure their housing dreams.

One in five (22%) of first-time buyers who saved each month to build up their deposit moved back in with or continued to live with their parents, according to Which? mortgage advisers.

Nearly four in 10 (37%) saving up for their first home worked overtime while 19% went as far as selling personal belongings to help raise the funds.

It comes as statistics from the Institute for Fiscal Studies last week revealed that homeownership among young people has fallen significantly in the past two decades.

While the campaign group revealed that 62% of first-time buyers set aside money every month in order to afford their own home, they are having to rely on money from elsewhere to get a foothold on the property ladder.

The ‘bank of mum and dad’ is estimated to have lent approximately £6.5bn in 2017 and around a third (31%) of first-timers used money they had inherited.

Three in ten (29%) received a contribution from a friend, family member or elsewhere.

In terms of deposit amount, almost half (46%) of first-time buyers had a maximum deposit of 10%, but with property prices continuing to rise throughout the country, even this amount is out of reach for many, Which? said.

The average property price in the UK is £234,794, which means to have a deposit of just 10% requires savings of over £23,000, without factoring in the additional costs of buying a property.

David Blake, principal mortgage adviser at Which?, said: “For many, the prospect of saving a deposit for a first home can be daunting, unrealistic and even downright depressing.

“However, there are various options out there for first-time buyers, from Help to Buy ISAs to equity loans, and even shared ownership. Consider speaking to an independent expert who can offer advice tailored specifically for you.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Big flu jab price hikes this winter: Where’s cheapest if you can’t get a free vaccine?

Pharmacies, supermarkets and health retailers are starting to offer flu jabs ahead of the winter season, but t...

Is now the time to fix your energy deal?

Fixed energy tariffs all but disappeared during the energy crisis. But now they are back with an increasing nu...

Everything you need to know about the pension triple lock

Retirees are braced to receive another bumper state pension pay rise next year due to the triple lock mechanis...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

The best student bank accounts in 2023: Cash offers, tastecards and 0% overdrafts

A number of banks are luring in new student customers with cold hard cash this year – while others are compe...

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Money Tips of the Week