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

News

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

MONEYFACTS ARCHIVE
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 It is now over 6 months old so the content may be out of date.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 Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Regulator to take closer look at high-cost credit

When used well, credit can be a viable way to help make ends meet and balance the books – but the problem comes when that credit is of the high-cost variety. The regulator has will be taking a closer look at the sector to see what else can be done.

The payday loan market is still broken

The payday loan market has been under fire a lot in recent years, and as a result, the financial regulator stepped in. But has it made a difference? Unfortunately, it looks as though there’s still a lot of work to be done.

Get a record low rate loan - if you qualify

Competition in the personal loans market is as hot as ever, so much so that one loan provider has slashed rates to the lowest on record – but only to those who fit the bill. The shopping bill, that is…
 
Close