Young people ‘saving less’

Young people are finding it increasingly different to put money away for a house deposit, research has found.

According to Sainsbury’s Finance, 16 per cent of people aged between 25 and 34-years-old are saving less money than they were a year ago and 36 per cent cannot afford to save anything at all.

With the average age of a first-time buyer currently standing at 29, this group need to be saving more to afford the necessary housing deposit, said savings manager Neil Cameron, who added that some mortgage lenders require as much as 25 per cent of the house price.

“Those saving for a deposit on a property should review any savings account they are using for this and make sure that they have one that pays a consistently attractive rate,” he advised.

Abbey Mortgages has advised first-time buyers to delay their purchase for a year to benefit from interest payments.

The firm explained that investing a deposit of £28,000 in an account paying a 6.5 per cent interest rate would accumulate £1,820 in 12 months.

© Adfero Ltd

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