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

Category: Loans
Date: 9/29/2008 6:11:05 PM

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.