Many people are turning to unsecured personal loans as a means of getting their hands on a deposit for a house, Santander Mortgages figures show.
It found that 27 per cent of first-time buyers are planning on using this method to raise deposit funds, potentially putting themselves in financial danger.
The average deposit for a house currently stands at £37,375, which is around 17 per cent of a property's value, meaning that a third of people believe they will never own a house.
However, 26 per cent revealed that they are hoping to make a purchase at some time within the next five years.
Phil Cliff, director of Santander Mortgages, commented: "The housing market is a tough place, particularly for first time buyers and with property prices averaging over £200,000 it's no wonder people are becoming increasingly resourceful when it comes to raising [a] deposit."
He added that the mortgage market is very competitive, so people need to shop around for the best deal. |
0 comments
