A new tool estimates how long it will take for you to get the keys to your dream home. Simply put in your current income, any cash you have currently tucked away in a Lifetime ISA, and where you want wish to live and the tool can estimate how much you need to save and how long it will take.
The creation of the calculator comes as new research among 2,000 non-homeowners reveals that more than half live with the fear of never owning a property. One-third point to their low income as a major reason for not being able to get on the property ladder. Meanwhile, one in ten confess to finding it hard to set money aside.
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What’s more, a staggering two-thirds voice concerns that they won’t have the money to keep up with high mortgage repayments despite having a substantial deposit.
Rajan Lakhani, a spokesperson for Plum, which commissioned the survey, said: “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.”
The study also unveiled that the thought of buying a home triggers anxiety in 36 per cent of people and leaves 30 per cent feeling hopeless; however, 23 per cent still feel excited about the idea.
n spite of the mixed emotions, a substantial 74 per cent uphold the importance of homeownership for financial stability. Even those not actively looking to purchase are keeping an eye on the market, viewing an average of two properties per week.
It also emerged 47 per cent of non-homeowners are also expecting to have to buy a home in an area they don’t really want to live in, just to get on the property ladder.
Rajan Lakhani, from Plum, commented: “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.”
Use the tool to see how close you are to owning your dream home.