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Newsletter

FTBs 'need 15 years to save'

By Jonathan Dawes, Mon 29 Sep 2008 - Published in Mortgages

People trying to get a mortgage for the first time may need as long as 15 years to save their deposit, research by Fairinvestment.co.uk has found.

According to the study, first-time buyers (FTBs) save an average of £139 a month, totalling £1,668 for the year.

But with the average house costing £174,178 according to the Halifax House Price Index, an average 15 per cent deposit would be £26,127.

It could therefore take FTBs more than 15 years to save enough.

Women were also found to take longer to save than men.

Saving just £121 each month, they could take 18 years to gather the deposit.

In related news, the AA has found the gender gap regarding car insurance premiums has increased by 59 per cent since 2003.

Young men can expect their first year of premiums to cost twice as much as those of women.

But Simon Douglas, director of AA Insurance, said that while young men were more likely to have accidents, anyone could lower their premiums quickly by driving safely and remaining blameless for accidents.