25% of first-time buyers save for five years for deposit

Wednesday, 04 May 2011 01:13

A first home deposit takes one in four first-time buyers more than five years to save up, according to figures from Spanish banking group Santander.

The financial services provider has revealed the length of time it is now taking some first-time buyers simply to save up enough to put down the deposit on their first home, without covering mortgage application fees and the other costs associated with buying a house.

For 23 per cent of Britons, five years is the expected minimum amount of time it will take to reach the necessary level of savings.

This equates to about 1.9 million people nationwide, while the overall average delay first-time buyers expect it will take them to save their deposit is 3.3 years.

Phil Cliff, director of Santander Mortgages, says: "Saving for a deposit is no easy task, especially in today's financial climate."

For Britons trying to save, rather than those paying off debts, the historically low base rate of 0.5 per cent means many accounts offer little help through interest to boost balances.

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