This handy new tool has been created to help you calculate how many days, months or years it will take to purchase your dream home. Just enter your income, the amount saved in a Lifetime ISA, and your non-negotiables such as location and layout, and the tool can estimate how much you need to save and how long that’s likely to take.
This innovation follows a study of 2,000 adults who don’t own property, revealing that 51% fear they’ll never make it onto the property ladder. Over a third say this is because they are on a low income, while 10% confess they aren’t saving as much as they could because they don’t understand the financial options available to them.
Even with a substantial deposit, two thirds worry they wouldn’t be able to afford hefty mortgage payments. It’s not surprise then that 88% wish they had been property hunting in the 90s when buying a house on a smaller salary was more feasible.
Rajan Lakhani, a spokesperson for Plum, which commissioned the survey, commented: “For many young people – and, increasingly, not so young people – taking that first step feels like a long way off.
“However, starting early and putting a plan in place with a clear target can be a really powerful tool to help stay motivated during those years of saving for a deposit.”
While, 23% feel excited about the thought of getting on the housing market, many feel anxious or even hopeless about the prospect. Still, even if they’re not in the market to purchase immediately, adults typically browse an average of two properties a week to stay informed about what’s out there.
Despite uncertainties surrounding home ownership, 74% believe it’s essential for their financial stability. As a result, 47% expect to buy in a location that isn’t on their bucket list just to get on the property ladder.
Rajan added: “There’s no doubt that getting onto the property ladder is tougher than it was for previous generations and this naturally creates anxiety. But there are plenty of options to give you the kick start you need to achieve your house buying dream.
“Apps are making it easier for savers to put money aside regularly thanks to automation. And you can make those savings work harder through a Lifetime ISA, which can give you up to an extra £1,000 from the Government each tax year towards a deposit.”
Try the tool now and find out how close you are to buying your dream home.