FINDING the money to buy your first home is an uphill battle from start to finish.
Buyers are constantly reminded about the difficulties they face to secure a deposit and with the economy struggling, thousands of pounds is increasingly hard to come by.
New research has revealed an average deposit of 20 per cent for a home in Blackpool is £15,707, and mortgage advisors are encouraging people to consider all options when it comes to securing a deposit.
Sue Garrod, a mortgage consultant for Questa Independent Financial Planners, in South Shore, said: “For a first time buyer, 20 per cent is a massive ask and most will only come up with 10 per cent.
“Most only go to 20 per cent if they have parental help because it’s very difficult for people to save up and live with their expenditure.
“A lot of first time buyers have the income and not the deposit, or they have the deposit and not the income.
“There’s not a lot of interest if you’re just saving in a bank account so it’s best to be strict with yourself and put a certain amount away each month.
“Set up a standing order so it comes directly out of your wage and you don’t have the urge to spend it.”
Mrs Garrod says new schemes to entice the buyer into securing their first home if they cannot afford the money have been set up.
She added: “If you’re buying a home for £150,000 you can put a five per cent deposit down and your parents or someone close to you can put £15,000 into an account which can’t be touched.
“This is really innovative if parents don’t want to give the £15,000 away and the buyer only has to save five per cent of their deposit.”
John Norris, principal of the Mortgage Shop, on Topping Street, Blackpool, suggests taking out an Isa before starting to save.
He said: “This not only gives you the opportunity to earn a decent rate of interest on your money, it also shelters any gains you make from income tax.
“You can save up to £5,640 into a cash Isa each year, or £470 per month.
“The rates on cash Isas aren’t always the best available in the market before tax, but may be better than what’s on offer on standard savings accounts after you factor in your nominal tax rate.”
Sean Oldfield, chief executive officer at the Castle Trust, who carried out the mortgage research, said: “Aspiring homeowners need alternatives to borrowing from family which is why the Government has launched a range of initiatives.”