Generation Rent save for up to 10 years for a deposit on their first home
Almost a quarter of first-time buyers have to wait up to 10 years to build up a deposit for their home, according to new research.
A poll of 1,000 first-time buyers by Which? Mortgage Advisers reveals that more than two thirds (69%) of first-time buyers took more than two years to save up for a deposit, with 23% having to put money away for between five and 10 years.
Unsurprisingly, first-time buyers are relying on the Bank of Mum and Dad to help them on to the property ladder, with three in 10 (29%) receiving financial support from their parents. In London, this is much higher at four in 10 (39%). Other relatives are also offering financial help, supporting a further 8% of first-time buyers.
The average-size mortgage for a first-time buyer was 68% loan-to-value (LTV).
A lucky 4%, meanwhile, were able to buy their home outright.
How much first-time buyers need
Which? Mortgage Advisers found that the average size of a mortgage for a first time buyer was 68% loan-to-value (LTV) – meaning buyers has a deposit worth 32% of the property’s purchase price.
According to separate research by Halifax earlier this year, the average deposit paid by first-time buyers in the UK was £32,321, while in London this shot up to a whopping £100,445 last year.
According to the annual Halifax First-Time Buyer Review, 28% of first-time buyers take out mortgages with a 30- to 35-year term – up from just 11% in 2006.