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Aspiring buyers desperate to raise a deposit

Wednesday, 16 November 2011 12:01 AM

First-time buyers are taking second jobs and extra loans in a desperate bid to get on the housing ladder, according to new research from Santander Mortgages.

The bank found that with the average deposit now more than £37,000, a third of non-homeowners have given up on the idea of buying but a quarter are still hoping to buy within the next five years.

Of these aspiring first-time buyers, 28 per cent say they have taken second jobs or overtime to boost their savings for a deposit and 27 per cent say they will raise extra funds by taking out an unsecured loan.

More than half (54 per cent) say they will use savings but 25 per cent are hoping for an inheritance or a gift from their parents and another 10 per cent say they will look for a family loan that they will pay back.

Renting out a spare room (seven per cent) and sharing the deposit payment with friends (seven per cent) are other popular options for aspiring buyers.

In contrast, only five per cent of current homeowners relied on a second job or overtime and just four per cent took out an extra loan.

Phil Cliff, director of Santander Mortgages, said: "The housing market is a tough place, particularly for first time buyers and with property prices averaging over £200,000 it's no wonder people are becoming increasingly resourceful when it comes to raising deposit."

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