First-Time Buyers Urged To Reconsider Savings Targets By Tml-mortgages At Isnare.com Ezine Articles

The average first time buyer is falling more than £5,000 short of their planned deposit, new figures have suggested.

Would be buyers are spending two years saving towards a ten per cent deposit before applying for a mortgage, but are still not managing to raise the necessary funds.

While aiming to accumulate more than £11,000 over a two year time period, the average first time buyer is saving just £270 a month towards their first home, which is leaving them £5,140 short of the desired total, research by Alliance and Leicester has recently found.

There is a clear mismatch between how much and for how long first-time buyers are willing to save and their ideal target deposit to buy their first property, said Richard Taylor, head of mortgages at Alliance & Leicester.

With the average first time buyer house priced at just over £135,000, the deposit of over £11,000 that first time buyers want equates to about eight per cent which would give them a sizeable slice of equity in their first home.

However, Alliance & Leicester recommends that would be buyers aim for a less ambitious target, claiming that there are plenty of good deals available for buyers with just a five per cent deposit.

It is worth noting that while first time buyers seem to have an unrealistic expectation of just how much they need to save in order to reach their ideal deposit, a decent deposit is not completely out of reach, Mr Taylor said.

With a five per cent deposit on a typical starter salary standing at £6,787, many first time buyers could manage to gather sufficient funds at their current saving level.

The bank also recommends that people cut back on socialising and leisure activities in order to bolster their funds, with would be buyers spending more than £1,500 a year on leisure activities.

Published At: Isnare Free Articles Directory http://www.isnare.com
Permanent Link: http://www.isnare.com/?aid=72838&ca=Finances

Important Notice DISCLAIMER: All information, content, and data in this article are sole opinions and/or findings of the individual user or organization that registered and submitted this article at Isnare.com without any fee. The article is strictly for educational or entertainment purposes only and should not be used in any way, implemented or applied without consultation from a professional. We at Isnare.com do not, in anyway, contribute or include our own findings, facts and opinions in any articles presented in this site. Publishing this article does not constitute Isnare.com's support or sponsorship for this article. Isnare.com is an article publishing service. Please read our Terms of Service for more information.