30 years to save for a deposit!

SG27

somethingcorporate wrote: »

The numbers are rubbish though aren't they?

The average FTB deposit used in those calculations are going to be skewed by FTBs that will not be saving a deposit but have it gifted by parents.

If those figures were 10% deposits which is enough to get on the housing ladder the time taken to save one would fall significantly.

Edit: In fact it suggests that the average deposit in England for FTBs is 20% and whilst the statistics may play this out it doesn't make this the minimum required and is going to be skewed by all sorts of things that shouldn't be factored into the minimum requirement for a FTB to get on the ladder.

10% is not enough of a deposit for many people. There's no way in hell I could afford the mortgage repayments with a 10 or even 20%! It took us 8 years and we saved 50% no help from parents except they allowed to live at home with very small rent!

martinsurrey

SG27 wrote: »

no help from parents except they allowed to live at home with very small rent!

so thats £80k of help where I am...

SG27

Posted it twice!!?

SG27

martinsurrey wrote: »

so thats £80k of help where I am...

£833 a month rent then? We could have got a flat for £700ish but there was no point in moving out when we both had perfectly good homes albeit seperate.

Reue

SG27 wrote: »

no help from parents except they allowed to live at home with very small rent!

Over £60k of help then (from my rent).

Reue

SG27 wrote: »

£833 a month rent then? We could have got a flat for £700ish but there was no point in moving out when we both had perfectly good homes albeit seperate.

I think he agrees with you on that... but not that you are suggesting they didnt help you financially.

SG27

Reue wrote: »

I think he agrees with you on that... but not that you are suggesting they didnt help you financially.

I'm not suggested they didn't. I said no help apart from low rent. Mine was £150 per month (£200 nearer the end) and partners was nothing although she did all the cleaning and housework.

DominicJ_2

We save my entire wage every month.
Deposit in 6 months.

Guest101

Even saving £500 a month, which is quite doable, is £6000 a year, so in 30 years that would be £180,000!

I would suggest that saving £6k a year for 3-4 years would give a 10% deposit quite happily.

Up north that would be 20% deposit on a large 2 bed, or medium 3 bed.

gazter

Cisco001 wrote: »

Your calculation is wrong. Don't forget bank usually allow you borrow 3.5 - 4 x annual salary.
The average UK salary is around £26k. I would assume Londoner would have a higher wages.
Let's say £34k?
So if the house cost £278k, the deposit for a single person has to be £142k in total. It is talking about saving £400 per month.

There are a number of lenders out there who will lend 4.75, and not sub prime by any means.