Would-be homeowners taking up to 10 years to save a deposit

Couples typically have to save up for at least two years to afford a deposit to buy their own home - and it can be as long as 10 years.

Couples typically have to save up for at least two years to afford a deposit to buy their own home - and it can be as long as 10 years.

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Getting on the first rung of the property ladder has been incredibly difficult for some time.

Sadly there doesn’t seem to be an end in sight to the troubles of first-time buyers – also known these days as “generation renters” given their struggle to own their own homes.

New research by Which? Mortgage Advisers has shown that some people are having to save for a decade before they have enough for a deposit on a home.

In fact, a quarter of those we asked said they had to save from anywhere between five to 10 years.

More typically though, two-thirds of first-time buyers are saving for more than two years.

In our survey of more than 1,000 first-time buyers, 69 per cent – or seven out of 10 – said it took more than two years to have enough to put down a deposit. That’s a trend that’s getting worse.

Back in 2015 when we asked nearly 2,000 recent home movers, only a third of first-time buyers said they had to save up for a similar length of time.

But it’s little wonder when property prices are always rising.

In the current mortgage market, typically the minimum deposit a first-time buyer will need is five per cent of the property’s value.

So if you wanted to buy a house valued at £150,000, you would need to save up at least £7,500 – a daunting prospect when the cost of living, particularly renting, is on the up.

It’s little surprise then, that the bank of mum and dad is being called on for help more and more often.

Around three in 10 – 29 per cent – of those in our latest survey admitted that they were supported in their quest for a home with financial help from their parents, while a further eight per cent were given support by other family members.

Without doubt our research shows the difficulty that first-time buyers have in saving enough money for a deposit.

So to try to help we’ve launched a free interactive tool which allows people to work out how long it will take to save to buy their dream home.

And getting the right advice on what mortgage is best is still as vital as ever.

So why not come visit our advisers at www.which.co.uk and find out all you need to know on buying your first home?

For all your consumer questions, write to me at askalex@which.co.uk
ASK ALEX

For advice on property deposits and getting accepted for a mortgage, call the impartial team at Which? Mortgage Advisers on 0808 252 7987.

Remember, your home may be repossessed if you do not keep up repayments on your mortgage.