Survey reveals first time buyers lack mortgage knowledge

Survey reveals first time buyers lack mortgage knowledge

Survey reveals first time buyers lack mortgage knowledge

The FINANCIAL -- A new Millennial Home Buying Survey of 1500 ’millennials’ who are presently renting or living at home has shown that over 40% of people aged between 21-30 do not know how much they would need to save for a deposit to buy their first home.

Amongst those who said they do know over 60% thought they would need to save 20% of the property’s value or under. In fact, an average first time buyer will need to save £29,218 which is 17% of the property’s value, according to RBS.

Extra financial assistance is something that over 54% of people need on top of their mortgage according to this survey. Parents are the primary source of extra funding for 60% of people while 37% said that they would access a Government scheme to get funding assistance if applicable.

Commenting on the results of the survey Lloyd Cochrane, Head of Mortgages at RBS and NatWest, said:

“This survey backs up what we see when we speak to many of our customers in their twenties. They are often not sure exactly how much money they need to have when they start to look at mortgages that will help them move into their first home.

“To help customers with this, NatWest and RBS have staff at all of our branches and available on the phone to answer these questions and guide them through the often daunting process of buying their first home. We also provide a range of information on our website that will help people to understand all aspects of the home buying process, as well as helpful tools to understand what might be the right mortgage for them. Customers can find out how much they can borrow in less than 10 minutes, search our mortgage rates and understand how future changes in interest rates might affect their repayments in the future”.