Potential first time buyers (FTBs) have been cutting back on their debt and spending in order to save for a house deposit, as research from Abbey Savings shows that 38% intend to increase the rate at which they save this year.
The average FTB believes they will need at least a £20,000 deposit in order to obtain a mortgage at a decent interest rate. However the deposit needed varies up and down the country, as those in London believe they need over £26,000 saved, whereas those in the Midlands are looking at saving a house deposit closer to £14,000.
Director of savings and investments at Abbey, Reza Attar-Zadeh, comments:“Building a deposit is no small task, but those who have chosen to start putting extra money away are clearly better prepared to make an offer on a property when they see their opportunity. Savers need to be aware that a large deposit will make it easier for them to be accepted for the best mortgage deal.”