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Jul 28, 2006
According
to a report published by Alliance & Leicester Mortgages, first time buyers
will face a potential shortfall of over £5,000 each despite planning to spend
two years saving for their deposit.
The
study was conducted by the company to examine how much, and for how long, first
time buyers plan to save for their deposit. Results show that on average, first
time buyers want to save a deposit of £11,710 – about eight percent of the
average first time buyer house price. When it comes to savings however, buyers
are looking to put away £270 a month for two years, which with interest gives
them over £6,570. This leaves them with a £5,140 shortfall of their ideal
target.
A&L
Mortgages says aspiring first time buyers will have to put aside almost £500 a
month to achieve their savings objective. Alternatively, buyers need to save
for longer - around three years and six months at current saving levels.
Surprisingly, A&L finds that nearly a third (30%) of potential first time
buyers are not saving for a deposit at all, despite having aspirations of
getting onto the housing ladder in the next two years.
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