Something has to give and for those saving for their first home, that something seems to be Netflix and Amazon Prime. 

According to new research by Rightmove, first time buyers desperate to save any penny towards a deposit are frequently giving up on life’s luxuries. 

The study showed that almost three quarters of those looking to get their foot on the property ladder as deliberately going out less and more than a third have cancelled subscription services such as Netflix and Amazon Prime. 

It is now taking the average first-time buyer five years to save up their deposit, while the  the average monthly mortgage payment for a new first-time buyer taking out a two-year fixed mortgage at 90% Loan-to-Value (LTV) is now £1,324.

The first-time buyer study also looked at what is most important to first-time buyers when purchasing their first home. A three-bedroom semi-detached house is the most popular property type that first-time buyers are hoping to buy outside of London. 

Tim Bannister, Rightmove’s property expert, said: “The sudden nature of mortgage interest rate increases has meant that first-time buyers have had to very quickly reassess their position. For example, those who already had a mortgage offer in place are trying to rush through their purchase to keep their lower rate. Many of those who had not yet secured an offer and found that the monthly repayments they would pay on a mortgage were a lot more expensive than planned, either had to budget for the extra costs, look for a cheaper property and borrow less, or pause their plans altogether.

“Despite the many significant challenges facing first-time buyers at the moment, the fact that demand in the sector is still above the last normal market of 2019 shows that there are many motivated first-time buyers right now who are still determined to get onto the ladder. For those without their deposit saved yet, the results of our first-time buyer study indicate that buying a first home remains very important to people.

“They are not being put off saving due to the current economic climate, and instead are making decisions in order to save as much as they can towards a deposit.”

Author:  Sarah Freeman, V&A Homes

Photo by Andrik Langfield, Unsplash