29% increase in mortgage deposit saving

23 March 2009 / by Rachel Mason
The number of Brits saving up a deposit for their first home has increased by 29 per cent since last summer.

According to new research from Birmingham Midshires’, there has been an increase of almost a third in the number of people putting savings aside for a mortgage deposit since July 2008.

Furthermore, the research reveals that an increasing number of young savers are putting money aside in order to build up a deposit for a new home and get a mortgage approved.

In July 2008, 19 per cent of those aged between 25 and 34 were saving for a house – that figure has now risen to 23 per cent. In the 35 to 44 age group, the figure has risen from eight per cent to 10 per cent.

While London used to have the highest percentage of mortgage deposit savers – 10 per cent in July 2008, rising to 12 per cent now – it is Wales that has seen the biggest increase.

Last summer, just six per cent of people in Wales were trying to put away enough to buy a home, but now, the figure has risen to 16 per cent – the highest in the country.

Apart from saving for a home, Birmingham Midshires' research revealed that many Brits are still putting the pennies away, but instead of just saving for the sake of saving, there has been a shift towards savings for particular goals.

The number of people putting money into savings accounts for nothing in particular has fallen from 37 per cent to 35 per cent while there has been an increase from six to 10 per cent in the number of people saving for a wedding, and a two per cent increase in the number of people saving for a holiday.

"This research shows a change in the mindset of Britons over the last seven months," said Tim Hague, director of Birmingham Midshires savings accounts.

"One positive thing to come out of the current financial uncertainty may be a renewed understanding of the importance of saving money in advance of making big purchases.

"The need for people to prepare for their financial future is increasingly important,” he said.

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