You are here: Home - Saving & Banking - News -

English want 90 times more savings to feel secure

0
Written by:
10/12/2012
The English wish they had savings worth ninety times their existing deposit in order to feel financially safe, a poll by Legal & General has shown.

Respondents said they wanted on average £93,730 in savings to feel financially secure. However, in practice the average amount held in savings by UK families is little over £1,000.

Chadney Bulgin mortgage partner Jonathan Clark said proof of a steady accumulation of savings was becoming more important at the underwriting stage of a mortgage application.

“From a purely mechanical point of view, a credit scoring system doesn’t take into account savings at all. But of course, if a first time buyer says they have £20,000 in most cases these days lenders tend to ask for evidence of the deposit, and in some cases, like it to be evidenced as having been accumulated over a period of time.”

Lenders liked the commitment savings over time demonstrated, he suggested. “Lenders don’t want someone to suddenly decide to buy a property on a bit of a whim and then get gifted £50,000 from mummy and daddy. They prefer them to be committed to saving it.”

The survey found expectations were highest among those in their late 40s and early 50s, where respondents wishaed they had £115,570 safely in the bank. By contrast, 18-24 year olds felt they needed just over £40,000.

Expectations also differed by geography – those in London wanted over £100,000 to feel secure, compared to £73,910 in the South West.

An Experian spokesman said while finding a deposit might be the biggest challenge for mortgage applicants, savings levels were not a factor in credit scores.

Tag Box

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.

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

How your monthly bills could rise as the base rate reaches 1.25%

The Bank of England has raised the base rate to 1.25% as predicted – the fifth consecutive rise in just six ...

Low-income pensioner? You could gain £3k top-up

Hundreds of thousands of retirees struggling with a low income are missing out on Pension Credit worth £3,300...

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.

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?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week