Our independent financial advisors at Enable are specialists in finding the right borrowing to match your needs. We all know times are hard for first time buyers and that typically they are putting aside £248 a month towards their goal according to a new report by the Yorkshire Building Society. That means it could take them more than eight years to raise a 20pc deposit.
At Enable our experienced IFA’s know lenders have toughened their borrowing criteria in recent months, and more than one in 10 would-be buyers told Yorkshire's survey that they were worried about being accepted by a lender. The report found that, even with compound interest, those saving into a typical easy access account with an interest rate of 1.25pc would need eight years and six months to raise the typical deposit needed of just over £26,000.
Some 7pc of potential buyers plan to go to their parents for extra help, while 4pc said they are hoping an inheritance would plug their deposit gaps. Almost a fifth of first-time buyers who had bought a home in the last year told the study they had had help from the "bank of mum and dad" with their deposit, compared with 13pc of people who had bought a property five years ago.
However, someone who consistently shopped around to get a better rate of interest could cut the length of time it would take to save up, especially if you have the help of experienced IFA’s like Enable of Bishop's Stortford.
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