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Secured loans could be 15 years away for first-time buyers

Secured loans could be 15 years away for first-time buyers

Category: Loans

Updated: 31/10/2008
First Published: 29/09/2008

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

First-time buyers could have to delay their homeownership plans for up to 15 years while they save for a deposit, it has been suggested.

The claim was made by Fair Investment Company after its latest poll found that the average Briton saves only £1,668 a year.

With the average cost of a home now almost £175,000, it would take 15 years at that rate of saving to accumulate a 15 per cent deposit.

Sharon Bratley, a chartered financial planner with Fair Investment Company, described the findings as "shocking" and warned: "The results just go to show the reality of how first-time buyers don't stand a chance without hefty savings or generous parents."

Many aspiring first-time buyers also have unsecured loans taken out during their student days to repay, which makes saving £25,000 for a deposit - a task Ms Bratley described as "not realistic" - even more difficult.

Meanwhile, mortgage broker Savills Private Finance has warned prospective home buyers to expect interest rates on property loans to climb in the next few weeks.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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