Overview

• Plum pegs the average first-time buyer deposit at £68,154 in its new savings timeline analysis.
• Under a 50/30/20 budget, it estimates 11 years four months for a £30,000 salary, with £25,000 at 12 years eight months and £50,000 at eight years two months.
• Using a Lifetime ISA would cut the £30,000 example to nine years eight months, thanks to a 25% government bonus worth up to £1,000 a year on £4,000 of contributions.
• The LISA can be used only for a first home or retirement, imposes a 25% charge on other withdrawals, and applies to properties priced at £450,000 or less.
• Plum stresses that required deposits and timelines vary by area, lender deposit rules and future pay, and its head of money cites rising prices, living costs and mortgage rates as headwinds.