You are here: Home - News -

First-time buyers moving back in with parents and cutting holidays – Nottingham BS

by:
  • 13/09/2018
  • 0
First-time buyers moving back in with parents and cutting holidays – Nottingham BS
More than one in four first-time buyers have moved back with parents and around 30% have stopped going on costly holidays to save money, research has found.

 

However, first-time buyers are missing out on government bonuses available through Lifetime ISAs and Help to Buy ISAs despite making major sacrifices to achieve their property dream, research from The Nottingham Building Society has found.

Around 61% said they have cut back on socialising, while 55% cut general spending on themselves and loved ones. Around 8% postponed starting a family or getting married while 7% sold their car and rely on public transport to maximise their savings.

According to the research, one in three saving to buy their first home in the next five years have not heard of the accounts that can boost their savings and less than half have taken advantage of a government scheme.

Savers aged 18 to 24 are the least likely to know about the financial benefits of ISAs that are available with 44% admitting they’re not aware.

 

First-time buyer challenges

HM Revenue & Customs figures showed 166,000 Lifetime ISAs (LISAs) worth £517m and averaging £3,144 per account were opened in the 2017/2018 tax year but hundreds of thousands are missing out.

The Nottingham’s chief operating officer, Simon Taylor, said that first-time buyers face a lot of challenges getting a deposit together, so it’s important to raise awareness of all the help and financial benefits that are on offer with the right accounts.

He added: “Our research shows people are making financial sacrifices to get on the ladder and they deserve some help. Thanks to the significant bonuses available, paying into a government-backed savings account, such as a Lifetime or Help-to-buy ISA, will enable first-time buyers to save a deposit more quickly or put down a larger deposit which can increase their options.

“The help isn’t just for first-time buyers either as the Lifetime ISAs can be used by savers wanting to boost their retirement savings also.”

 

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
AMI: Broker firms risk complaints by segmenting advice

Mortgage broker firms and networks risk leaving themselves open to complaints of offering incorrect advice if they close off pathways...

Close