The average property in the North West for first-time buyers currently costs £131,977. As a result, in order to put down a 20 per cent deposit, aspiring home owners will need to save more than £26,000. For many people, saving such a large amount of money can take several years.
While the Help to Buy scheme has enabled more than 88,000 people to purchase a home with as little as five per cent of the property's value, some first-time buyers may also want to consider other options in a bid to save the money required.
Two thirds of first-time buyers rely on the 'bank of mum and dad' to some extent. This may involve moving in with their parents to reduce living costs, accepting money towards a deposit or selecting a guarantor mortgage.
Although it's not possible for everyone to seek financial assistance from family members, those that can take advantage of such opportunities could save a larger deposit in a shorter space of time.
Regular ISAs and savings accounts
Although the Help to Buy ISA can boost deposits by 25 per cent, for those who can afford to put away more than £200 each month, a regular ISA or savings account may be appropriate.
Savers that place their money in an ISA will benefit from tax-free interest up to the value of £15,240, while those that opt for a regular savings account could see their funds grow faster than they would in a current account.
Before choosing an account, it's recommended that prospective buyers spend time comparing various options in order to ensure they're selecting the right account. For example, savers will need to consider whether they need regular access to their money, or whether they can lock their funds away for a set period of time.
Buyers in the North West benefit from some of the cheapest property prices within the UK. However, with the north growing in popularity among buyers from across the country, savers currently looking to own a house or flat of their own in the near future could see their new home increase in value over the next few years.
For those confident in their ability to meet regular mortgage repayments, finding ways to lower their deposit could give them the boost they need to get onto the property ladder. Whether they opt for the Help to Buy scheme, increase their savings in a suitable account, or seek others ways of increasing their funds, saving for a deposit needn't be a barrier to home ownership in the North West.
About Aldermore Bank
Aldermore Bank is a dedicated supporter of UK savers and homebuyers. Visit the site to find out more about how Aldermore can help you take your first steps on the property ladder.