The newspapers will frighten you senseless about how much money you have to save for a deposit, but they are quoting inaccurate figures.
There is a big difference between the ‘average’ deposit that first time buyers put down and the actual deposit that’s required. With the bank of mum and dad and sometimes grandparents, some first time buyers can put down big deposits, but it doesn’t mean you have to.
A new survey from our friends at First Time Buyer Magazine shows:-
One third of First Time Buyers in London have nearly £10,000 saved to buy their first property
And with this money, just over 50% of those surveyed are still aiming to get on the property ladder. The magazine asked over 1,000 first timers and an additional 29% of hopeful homebuyers have up to £20,000 to put away.
But with the Help to Buy ISA on its way, it may well help to boost your deposit monies by another 25% - thanks to the government.
Lynda Clark, editor of First Time Buyer Magazine says “When it comes down to it, the lack of deposit is the biggest barrier for most aspiring homebuyers today. Although we have recently seen a return of more 95% mortgages through mainstream lenders, a bigger deposit saved will mean access to lower interest rates, therefore making monthly repayments more affordable.”
But the research also shows a worrying sign that many first time buyers don’t look or investigate purchasing a home further than the internet and that’s not the place to hang one of the most important decisions of your life on.
The good news is that a £10,000 to £20,000 deposit may well be enough to get you on the property ladder – and that’s what’s important, getting on the first rung, not necessarily getting the best interest rate you can.
The schemes that you can look at to help include:-
Rent to buy
Help to buy
But which is right for you depends on your circumstances and that’s not something which the internet can help you with!
So to help make sure you get the best advice and know exactly where you stand, come and visit me and other experts, come to the First Time Buyer Home Show:-
London on October 10th at the Business Design Centre in Islington
It’s free to attend AND you get the chance to win £5,000 too!
So why not sign up at www.ftbhomeshow.com.