First time buyers lack mortgage knowledge

The RBS Millennials Home Buying Survey shows that around 41% of 21-30 year olds don?t know how much they need to save for a deposit to buy their first home. And of the 60% who think they do know what their deposit should be, less than half were actually correct in their estimate.

So, are young people optimistic about the housing market' The common perception is that they?re not, yet nearly 70% of 22-30 year olds think they will have saved enough for a deposit for a house within the next 5 years

Flying in the face of the prevailing belief that Millennials are negative about their opportunities to buy a house, the data also revealed:

' 53% of Millennials did not 'agree' that they were experiencing Generation Rent

' 69% of Millennials believe they will have saved enough for a deposit in the next 5 years

This may be down to a relative knowledge gap prevalent among Millennials:

' 41% didn?t know how much deposit they would need to buy a house

' 78% of Millennials don?t know how to apply for the Help to Buy Scheme

Over 54% of respondents said they would need additional financial support to be able to afford their deposit.

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?.

Read more about the Millennials Home Buying Survey here (NatWest).

... LandlordZONE.


Article courtesy of LandlordZONE

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