A quarter of first time buyers expect to spend at least five years saving up for a deposit, new research reveals.
While 23 percent of first time buyers expect to be saving for at least five years for their first home, 54 percent admit they will be using savings as their deposit.
The average amount of time a first time buyer saves in the current climate for a deposit is 3.3 years.
The study by Santander Mortgages also shows less people think they can save the required amount for a deposit in a year, 11 percent, down from 19 percent three years ago.
ìSaving for a deposit is no easy task, especially in todayís financial climate, with many customers, especially in recent years, having to put down larger deposits to secure their mortgage,î commented Phil Cliff, Santander Mortgages director.
To afford to buy their own home, many first time buyers were shown in the study to be committing to second jobs or overtime to boost their income, as 28 percent claim they are doing.
While 27 percent are hoping to boost their deposit by taking out a personal loan.
House Prices Fall
The latest Nationwide house prices index reveals house prices fell in April by 0.2 percent, possibly as a result of buyers unable to meet the high cost of a deposit effecting the movement in the market.
The price of a typical home in the UK is 1.3 percent lower than a year ago, now standing at £165,609.
ìWhile the UK economy only managed a modest bounce-back at the start of the year, after the weather-induced contraction in late 2010, the economic recovery is expected to gather momentum,î added Robert Gardner, Nationwideís chief economist.
Those looking to save for a mortgage may benefit from comparing savings accounts to boost the funds they intend on investing.