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FIRST TIME BUYERS ACCELERATE DEPOSIT SAVINGS
09 Feb 2009
-
Two fifths aim to save more towards a deposit on a first home in 2009
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First time buyers hope to put aside an extra £150 each month
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Average deposit expected to be £20,000
Almost two fifths of prospective first time buyers are increasing the rate at which they save towards a deposit in 2009, according to new research1 from Abbey Savings.
38 per cent of those already saving towards a deposit said that they were looking to increase the rate at which they put their money away in 2009. Meanwhile, 40 per cent of those without any form of deposit stated that they had now decided to start saving this year.
With house prices looking increasingly affordable, those with a deposit said that they intended to try and save on average an extra £203 each month this year in order to get on to the property ladder, while those who were just beginning to save a deposit said that they intended to put away £123 on average each month.
When asked how much they believed they would need to save the average first time buyer stated that they were working towards building a deposit of £20,000, but there were substantial variations amongst the regions. Those in
The table below shows what the average first time buyers estimated savings goal would equate to in terms of a deposit at today’s house prices. In most cases they are planning to save less than the twenty per cent which is generally considered necessary to obtain a competitive mortgage deal, which may mean many of these potential buyers are factoring in a further fall in house prices.
|
Region |
Average amount FTB think they should save ¹ |
Maisonette/Flat ²(Deposit equivalent to) |
Terraced ²(Deposit equivalent to) |
|
North East, |
£18,707 |
£104,818 |
£78,595 |
|
The |
£13,636 |
£93,766 |
£89,314 |
|
East and South of |
£20,875 |
£115,874 |
£143,594(15%) |
|
|
£26, 875 |
£284,567 |
£289,956 |
|
|
£17,788 |
£109,668 |
£110,097 |
|
|
£20,000 |
£153,164 |
£124,700 |
First Home Saver (Special Issue 1)
- Branch based regular savings account offering a variable rate of 5.50% gross p.a./AER (5% gross AER from 1 February)
- Deposit of between £100 and £5000 is required to open the account and then a regular monthly deposit of between £100 and £300 by standing order. If you deposit less than £100 or more than £300 in a month, you will receive a variable rate of 0.10% for that month only. The maximum balance permitted is £50,000.
- Withdrawals are not allowed on the account. You can access your money at any time but will need to close the account. On completion of saving/closure of the account saver must have a ‘no obligation’ mortgage interview with an Abbey mortgage advisor. You therefore are not required to take out an Abbey mortgage at the end of the term. You can have the mortgage interview up to 90 days before you close the account.
- To qualify for the account you need to be aged between 16 and 35, a non-homeowner and able to set up a regular standing order for between £100 and £300 each month.
- Ends -
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Notes to Editors
1) Opinium surveyed 2000+
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