First time buyers 'struggling to raise a deposit'

02-Jul-2007

Many first time buyers struggling to save up for a deposit on their own home only have themselves to blame as they keep dipping into their funds, mortgage lender Abbey has suggested.

Research from the bank has found that 11.2 million potential first time buyers have said they take money from their deposit funds almost every month, with almost 900,000 saying they did so every week.

Such efforts are leading to an increased take-up of larger value mortgages, Abbey has advised.

"As surprising as the research is, it does go a long way to explaining why so many people are finding it hard to get onto the property ladder, and why of the first time buyers we spoke to we found that there is a strong demand for our 100 per cent mortgage, as many have not been able to save a deposit large enough," commented Abbey for Intermediaries managing director Rickey Okey.

However, such mortgages leave homeowners running the risk of negative equity, especially with interest rates set to rise again in the near future, analysts have advised recently.

To find out about those mortgages specifically aimed at first time buyers, see our best buys for first time buyers table.

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