Aspiring homeowners need to save, save, save

02-Feb-2006

Around 40 per cent of first time buyers plan to save up for their deposit money through personal money management.

Click here for further information on finding a deposit

Despite the increasing obstacles facing potential buyers in terms of raising an adequate deposit, research indicates that many intend to raise the money themselves.

Almost 30 per cent said they would join forces with a partner to help save, while 11 per cent were hoping that their family would add to any savings plan.

To learn more about joint ownership, buying with friends or family click here

Barry Naisbitt, chief economist at Abbey, which carried out the survey, said: "Since most first time buyers cannot rely on handouts, they have to save up in the traditional way."

Seven per cent expected to raise the money by inheritance funds, while four per cent admitted they would be relying on a 100 per cent mortgage.

A low salary was cited as the main obstacle by over a third of people, with personal debts, renting costs and a lack of willpower also making the list.

Mr Naisbitt acknowledged the problems facing first time buyers but urged them to ensure their finances are in order before taking on any more debt.

"Unless they are sure that their personal debt is manageable, first time buyers are not even starting from square one," he added.

If you are interested in buying a new house within a 'gifted deposit' scheme whereby you don't need to come up with a deposit but just pay a nominal fee of £5000 click here

To find out what you can borrow, even if you are in an adverse credit situation click here

2008: May | Apr | Mar | Feb | Jan

2007: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan

2006: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan

2005: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar