First Time Buyers: Personal Savings
The question
To ask the Chancellor of the Exchequer, what estimate she has made of the average time it takes a first-time buyer to save for a deposit.
Answered by Lucy Rigby
The UK benefits from a competitive mortgage market that offers various low deposit products; prospective buyers are encouraged to shop around and speak to a mortgage broker to find the best possible product for their circumstances.
The government is committed to making home ownership more accessible by supporting first-time buyers, and welcomes changes made this year to support homeowners. FCA clarifications to their affordability testing rules earlier this year are allowing customers to borrow around 10% more on the same income. This could equate to an additional £20k for an average first-time buyer.
Additional flexibility from the Bank of England in relation to their loan-to-income rules are also allowing more customers to access larger mortgages in relation to their incomes. The Bank of England estimates that this change provide capacity for lenders to support up to 36,000 additional first-time buyers in the first year.
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