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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.
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