First-time buyers 'take 15 years to save deposit'

Date:Thursday 25th September 2008
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First-time buyers could need as long as 15 years to save a 15 per cent mortgage deposit, according to new research.

A survey by Fairinvestment.co.uk of more than 2,000 people found that the average saved each month is £139.

This makes an annual total of £1,668.

With the average house price now £174,178 according to the Halifax House Price Index, a 15 per cent deposit of £26,127 could take more than 15 years to save.

Sharon Bratley, chartered financial planner at Fairinvestment.co.uk, said the news was "shocking but comes as no real surprise considering the state of the housing and mortgage market at the moment".

Meanwhile, Britannia Building Society tracker mortgage rates have been cut.

These include flexible and offset packages, two and ten-year fixed-rate ones and also the range of buy-to-let products.

Most new deals have also had new loan-to-value bands introduced, allowing borrowers the choice of 60 per cent, 80 per cent or 90 per cent depending on the size of their deposit.