Progressive study finds house buyers surprised at amount of money available
FIRST time house buyers in Northern Ireland had more money at their disposal than they anticipated, a new study carried out by Progressive Building Society has found.
Sixty per cent of first time buyers in the region were able to borrow more than they thought - but, for a third of respondents, it took more than two years to save for a deposit.
The study looked at a number of areas relating to experiences of house-buying and mortgages and noted that, overall, 64 per cent of people found the mortgage process straightforward.
One third of people surveyed said it took more than two years to save for a deposit, with 50 per cent having to fork out between five and 10 per cent of the purchase price of their first home.
For 29 per cent of respondents, the deposit ranged between 11 and 20 per cent of the price of the property value.
Other findings included the revelation that just 21 per cent of respondents said they could afford to put down a deposit of more than 20 per cent of the value of their home.
When questioned about moving home, close to a third said they moved to their second home after a period of six to eight years, while a quarter said they made a move after three-to-five years.
Declan Moore, operations director at Progressive, said the report indicated the need to nurture regular savings habits in Northern Ireland, while giving a "clear insight" into first time buyers’ experiences of the house buying process.
"Buying your first home can be daunting and is undoubtedly one of the largest financial decisions we make in our lives," he said.
"At Progressive, we’re committed to working with our members and customers to make the mortgage process as simple as possible, particularly for first time buyers as they step onto the property ladder."