LATEST research claims that it now takes first time buyers as long to save for a deposit as it did a decade ago.
Saving for a deposit in England takes an average of 10 years, says the Home Builders Federation.
However, the study also shows that the impact of Government mortgage schemes is beginning to be felt by first time buyers.
Incentives like NewBuy and First Buy are becoming more and more popular as those taking advantage of the cost-curbing way to get onto the housing ladder reap the benefits of a helping financial hand.
These schemes are currently available at Linden Homes’ developments across the region – with many first time buyers and young professionals admitting that moving would be difficult without these incentives.
Customers using the scheme have included first time buyers, teacher Katie Korniotis (24) and plumber Austen Diaper (23) – who recently moved into their new three-storey townhouse.
Both were living with their parents whilst saving for a deposit on their first home together.
Katie said: “The NewBuy scheme sounded fantastic, and raising a small deposit meant that a new home became an instant reality for us. Linden Homes explained all the finer details to us and were also able to assist us in arranging our mortgage, which meant the whole process was completely hassle and stress-free.”
Here’s how the schemes work:
NewBuy is available to either those stepping onto the housing ladder or existing homeowners needing just a five per cent deposit to secure a home up to £500,000.
Linden Homes will work in partnership with major High Street lenders to secure a 90-95 per cent fixed rate mortgage.
New homebuyers wishing to take advantage of the scheme will need to qualify for a mortgage with a mortgage lender – which Linden Homes can help arrange.
The FirstBuy initiative has been designed for buyers who have found large deposits required for mortgages a stumbling block. With just a five per cent deposit, the scheme allows eligible buyers to own 100 per cent of their new home but pay as little as 80 per cent of the price now. The remaining 20 per cent is provided as an equity loan by the government and Linden Homes.
Linden Homes sales director Chris Roads said: “While on their own the statistics make dismal reading, as a developer which offers these and more incentives, we are beginning to see some light at the end of the tunnel for first time buyers.
“Government-backed schemes like NewBuy and FirstBuy are offering real options for people looking to buy their first home, or move house.”
The HBF study shows that on average across England, and without assistance from a Government scheme or other help, a purchaser in their Twenties wanting to buy an average FTB home (£173,265) would have to save a deposit of £35,053.
This would take almost seven years if they save 33 per cent of their net income – compared to two and a half years under the same circumstances in 2002.
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For further press information please contact Cetti Long at Media Matters on 01733 371363 or email cetti@mediamatters-pr.co.uk
References to “we”, “us” or “our” are to the part of the Vistry Group (including Linden Homes, Bovis Homes, Countryside Homes, Drew Smith, Vistry Ventures or one of Vistry’s joint venture companies) from which you are intending to purchase a new home. References to "you” and “your” are to the prospective buyer or buyers of a new home from us.
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