first time buyers dip into savingsPeople looking to get onto the property ladder have been tempted to spend money supposedly set aside for a deposit, it has been claimed.

 

Abbey reports that 42 per cent of those saving up for their first home in the UK have spent a total of £1.9 billion set aside for their deposits.

 

The firm discovered that 52 per cent of people spend their saved money on fashion items or new gadgets, while a further 50 per cent admitted to spending it on holidays.

 

Nici Audhlam-Gardiner, director of Abbey Mortgages, said: "First-time buyers may be more tempted to dip into their deposit savings this year because of the uncertainty in the market and prospect of falling house prices."

 

However, property continues to be a "good investment for the longer-term", she added, stating that it is a good reason for people to continue saving.

 

Sue Anderson of the Council of Mortgage Lenders said earlier this week that people ought to "research the market" when looking for a mortgage.


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