First-time buyers ‘wise to delay purchase’

Over two-thirds (67 per cent) of first-time buyers are delaying buying a property for at least a year, reports Abbey Mortgages.

According to the firm, these buyers have saved around £31 billion between them in first deposit funds, which could earn them an extra £2 million in interest over the next 12 months.

“Those delaying purchasing a home would benefit greatly from moving their deposits into high interest saving accounts,” advised director Phil Cliff.

With an average interest rate of 6.5 per cent, investing a deposit of £28,000 would leave a first-time buyer £1,820 better off after a year, the firm adds.

Abbey recently revealed that three-quarters of first-time buyers are being dissuaded from purchasing a home by speculation over house prices and the current state of the economy.

First-time buyers currently account for around 30 per cent of new mortgage borrowers, reports Halifax, compared to 50 per cent in the late 1980s.

© Adfero Ltd

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