Savings accounts need to take a more important role in the lives of people looking to purchase a property.
This is according to Simon Kenyon, savings director at Halifax, who referenced research showing that many people’s savings habits are not up to scratch.
“We know from our own research that for some customers to get on to the ladder, their savings behaviours need to change,” he said. “With Head Start Home Saver, we are rewarding customers who save for their deposit with Halifax.”
The research found that just 32 per cent of non-homeowners have a realistic plan to purchase a house within the next five years. Around 14 per cent showed a strong level of commitment, stating that they want to save every penny for a deposit and are sacrificing certain aspects of their lifestyle to achieve this. But a further 14 per cent claimed to be trying to save up for a deposit, but admit to spending spare money on having a good time.
Halifax is offering a savings account paying 2.80 per cent interest. When this is linked in with the bank’s home starter packages, customers are eligible for extra contributions towards the purchase of their property.
