First-time Buyers Take Differing Approaches to Saving a Deposit

New research by Santander Mortgages has identified three different groups of first-time buyers, each with a bold approach to saving for a property deposit – the ‘alternatives’, ‘boomerangers’ and ‘minimalists’.

More than 40% of first-time buyers are considering alternative finance options to raise their house deposit. Of these ‘alternatives,’ 22% are considering selling shares in the property offering a potential capital return when the home is sold. A further 19% are planning to embrace crowdfunding to raise their deposit, while 9% are planning on selling a ‘bond’ to investors offering a guaranteed interest payment.

To save money for deposits, 38% of first-time buyers would consider becoming a ‘boomeranger’ and moving in with their parents or partner’s parents. Those willing to move back home would be open to staying for an average of two years, with 15% willing to live with them for more than five years.

The research shows ‘minimalists’ are happy to downsize their lifestyles to save for a house deposit. Almost two million Brits are willing to switch nutritious meals for pot noodles in a desperate bid to save money, while 21% will give up alcohol to raise funds.

“We know that getting a foot on the housing ladder is tough and our research suggests first-time buyers are taking some quite serious measures to make that first step,” said Miguel Sard, Managing Director of Mortgages at Santander UK. “They are showing incredible levels of resilience, determination and ingenuity to save for a deposit and exploring all available options to maximise their savings.”

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