According to new research released by Abbey Mortgages, first time buyer mortgage candidates are rapidly squandering their savings. It found that two fifths of Britons have wasted nearly 2 billion pounds on frivolous spending. The money that was blown should have gone towards a down payment, according to experts. This may make it increasingly difficult for these people to get a first time buyer mortgage, particularly with the current state of the housing market. The increased cost of living was also blamed as a primary reason that new home buyers are running through their savings.
Nici Audhlam-Gardiner, Director of Abbey Mortgages, commented: “Saving £23,000 or more for a deposit is no mean feat, particularly if you let distractions get in your way. But if you’re single minded and set yourself a realistic savings target then you could find yourself making an offer on a house sooner than you think.
“First time buyers may be more tempted to dip into their deposit savings this year because of the uncertainty in the market and prospect of falling house prices. However there are still very good reasons for people to get on the housing ladder, as property continues to be a good investment for the longer term.”
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