Our latest research (1) reveals that despite many would-be first-time buyers amassing sizeable deposits, many admit to having poor mortgage knowledge.
The findings reveal that 15% of those surveyed who are planning to buy their first home confirm they know nothing about mortgages, and 31% say they know very little about them.
Iain Kirkpatrick, Chief Customer Officer at The Nottingham, said:
“It’s encouraging to see that so many of those planning to buy their first home understand the importance of having a healthy deposit.
“However, it is concerning to see so many admit they don’t know enough about mortgages generally, and how to find the best deal. Seeking independent advice from an expert adviser can be the key to understanding more and could also save thousands of pounds in repayments.”
THE BIG TAKEAWAYS FROM THE RESEARCH ARE AS FOLLOWS:
RECOGNISING IMPORTANCE OF DEPOSITS
Despite this, many first-time buyers do realise the importance of having a large deposit. Some 7% have set a target of securing a deposit of 30% or more, 21% want 20% or more and 36% want a deposit of at least 10%. Just 13% are aiming for a deposit of 5%, and 23% are targeting between 5% and 10%.
Some 8% of would-be first-time buyers currently have £50,000 or more saved as a deposit, and 13% have between £20,000 and £50,000.
Percentage of would-be first-time buyers who currently have this amount saved as a deposit
|Up to £999||31%|
|Between £1,000 and £4,999||19%|
|Between £5,000 and £9,999||16%|
|Between £10,000 and £19,999||13%|
|Between £20,000 and £29,999||9%|
|Between £30,000 and £49,999||4%|
|£50,000 or more||8%|
(1) Nottingham Building Society commissioned consumer research company Consumer Intelligence to interview 1,023 UK adults, of which 160 expect to buy their first homes within the next five years. They were interviewed online between 18th and 21st February 2022.