If an aspiring homeowner starts saving 18 years old, they would need to save £337 a month to cover a 20% deposit on a £343,923 property, a study from Keys By 35, using data from the HM Land Registry, has revealed.
At age 21, this increased to £382 a month for a £320,466 property, while starting at 30 requires saving £834 monthly for a home priced at £250,095.
James Chaney, principal broker at Skylights Mortgages, said: “Although you can get a mortgage with as little as a 5% deposit, a larger deposit can give you access to mortgage products with lower interest rates.
“20% is the average deposit for a first time buyer as it represents a healthy balance between affordability and keeping your interest payments as low as possible.
“While putting away £400+ every month from 18 years old might seem impossible, it’s worth bearing in mind that if you make a purchase with a partner then you can half these figures as the deposit will be shared between you and your partner.”
He added: “You and your partner are under no obligation to share the deposit equally either, however if you contribute a different amount to the deposit (and subsequent mortgage) then you should consider ‘tenants in common’ arrangement to ensure that your equity in your home reflects your contribution.”
“The UK Government also offers a range of schemes to help you with getting on the property ladder, although these get phased in and out every few years.
“At the moment the UK government offers a First Homes scheme which allows you to buy a new home for 30% off its market value, so long as you earn under £80,000 a year and the home is worth less than £250,000 (£450,000 in London).”
He said: “They also offer a Rent to Buy scheme where you can get 20% off your rent for two years to help you save up for a deposit.
“These two schemes are only available for properties where the owner or developer has agreed to take part, so ask your estate or letting agent whether they have any properties covered by either scheme in their inventory.”
