The latest survey from the Nottingham BS reveals that some younger people are making sacrifices to meet the financial tickboxes required when applying for a mortgage. Covid-19 restrictions have hit some people hard but cuts in spending – plus furlough cash and reduced commuting costs – have enabled many planning to buy their first home to save more and realise their dream of climbing on to the property ladder sooner.
This is according to new research from the Nottingham Building Society (The Nottingham). The study found that, of those surveyed, one in five (19%) planning to buy their first home in the next five years will have deposits saved this year and one in three (32%) will be viewing properties in 2022. Around one in ten (8%) first-time buyers have already started house hunting.
Around one in four (28%) expect to start viewing properties in the next two to three years, and 25% within the next three to five. The remainder don’t know when they will start viewing. In terms of what those planning to buy their first home have done to help save for this earlier than expected, 60% have spent less on clothes, 56% have made sacrifices when it comes to eating out, and 51% cut spend on holidays. Some 16% have more than one paid job to help save their deposit.
Those new buyers will need life insurance, plus buildings ansd contents of course.
Actions would-be first-time buyers have taken to help save for their deposit Percentage of would-be first-time buyers who have done this:
Spent less on clothes 60%
Cut back on eating out 56%
Sacrificed holidays 51%
Reduced spend on big food shops 43%
Taken on more than on job 16%
Taken a loan from parents/other family members 7%
Iain Kirkpatrick, Chief Customer Officer at The Nottingham, said: “The restrictions placed on people during the height of the pandemic saw many dramatically cut back on the amount they spent – from eating out, to buying new clothes and holidays. Although it has been a very difficult time, for many of those saving for their first home the reduction in their expenditure provided an opportunity to dramatically increase their deposit savings and move a step closer to owning their own home.”
As well as its own range of mortgages, The Nottingham offers access to products available from over 90 lenders via expert Mortgage Advice Bureau advisers, so customers can be sure they get the right deal for them.
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