Halifax Helps First Time Buyers Save for a Deposit
Published: 3 August 2011 By Julian Stone Leave a Comment
Halifax research has revealed only 14% of non homeowners are putting every spare penny aside for a house deposit – inspiring it to launch a new savings package for potential first time buyers.
Three quarters of non-homeowners want to buy a house, but only 14% are saving every penny for a deposit and only 32% have a realistic plan to buy a home in the next five years.
These are the findings of new research by the Halifax, which has launched Head Start Home Saver in response.
The new product is designed to give mortgage borrowers a helping hand. If a first time buyer uses a Halifax savings account to build their savings for 10 out of 12 months in the year before taking about a Halifax Home Saver mortgage, they’ll receive £600 in the account they use to pay their mortgage.
All they have to do to qualify is choose their mortgage from the first-time buyer range and save the required amount of money in any Halifax savings account.
However, if they are saving for a deposit elsewhere, they can still transfer their savings to Halifax and build their balance as needed before applying for the mortgage.
Halifax Savings Director Simon Kenyon said: “We know from our own research that for some customers to get on to the ladder, their savings behaviours need to change. With Head Start Home Saver, we are rewarding customers who save for their deposit with Halifax.”
Moneyhighstreet says: “This deal could be very useful for first time buyers looking to get on the property ladder, and the incentive of £600 could really help your saving behaviour.
“If you are looking for additional ways to save, the Halifax research found most first time buyers cut down on socialising (34%), a quarter cut back on holidays and a similar number spent less on clothes, toiletries and grooming.
“However, remember that the mortgage market is getting more competitive. So before locking yourself into a Halifax deal, check the market for other mortgage offers – you may find more competitive interest rates as a result.”
