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First time buyers still falling short

First time buyers will face a potential shortfall of over 5,000 each, despite planning to spend two years saving for their deposit, according to Alliance & Leicester.

The A&L mortgages study found FTBs want to save a deposit of 11,710, about eight per cent of the average first time buyer house price.

However, when it comes to saving, they are looking to put away 270 a month for two years, which with interest gives them over 6,570. This leaves them with a 5,140 shortfall.

A&L head of mortgages Richard Taylor says: There is a clear mismatch between how much, and for how long first time buyers are willing to save, and their ideal target deposit to buy their first property.

With the average first time buyer house priced at just over 135,000, the deposit of over 11,000 that first time buyers want equates to about eight per cent, which would give them a sizeable slice of equity in their first home.

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