First-time buyers squandering their money

Potential first-time buyers are spending the money they have saved towards a deposit on other things, according to a new report.

Research from Abbey has revealed that 42 per cent of people in the UK who are saving towards a deposit for a house have spent a combined £1.9 billion of it.

Nici Audhlam-Gardiner, Director of Abbey Mortgages, commented: "Saving £23,000 or more for a deposit is no mean feat, particularly if you let distractions get in your way."

She added that if potential buyers are "single-minded" and set themselves realistic savings targets then they can be making an offer on a house sooner than they think.

The research also revealed that the average first-time buyer believed they would need to save up £23,000 in order to get onto the property ladder.

Over half of the people surveyed said that they were spending their gadget money on fashion items or gadgets.

Abbey offers a range of financial services including mortgages and bank accounts.

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