When it comes to getting on the property ladder, saving for a deposit remains the biggest obstacle for first time buyers in the UK.
New research shows that up to 26% will rely on their parents for a loan or gifted deposit, with 46% believing that the issues of rising house prices should be addressed.
The Government’s Help to Buy Mortgage Guarantee scheme ended in late 2016 as is was seen to have achieved its goal. Although the Help to Buy scheme remains in place for new-build properties, buyers have to consider areas away from family and friends to benefit from the scheme.
With the average house price in Sittingbourne reaching £234,311 in 2016, a 5% deposit together with stamp duty and costs will result in the average first time buyer having to have around £15,000 in savings.
Average house prices in ME9 & ME10 for 2016
- Sittingbourne- £234,311
- Iwade - £266,800
- Teynham - £221,531
- Newington - £253,283
Statistics provided by Rightmove.co.uk
With first time buyers being the driving force behind our housing market, many High Street lenders have continued to offer a 95% mortgage, although the higher level of risk is shown in the rates of interest offered.
On a positive note, recent statistics released by the Bank of England reveal the proportion of first time buyers taking out a mortgage is the highest since records begun in 2007.
If you are in the process of saving a deposit and would like to speak to an independent financial advisor, click here and we will arrange a mutually convenient time for our advisor Joanna to contact you.