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Britons dipping into deposits, Abbey says

First time buyers in the UK are making their home purchases more difficult by dipping in to their savings, Abbey has found.

According to the home loans provider, four times as many consumers using their savings for day-to-day costs than this time last year.

Abbey claims that around £1.9 billion has been spent in this way over the last year.

Nici Audhlam-Gardiner, director of Abbey Mortgages, commented: "Saving…for a deposit is no mean feat, particularly if you let distractions get in your way - but if you're single minded and set yourself a realistic savings target then you could find yourself making an offer on a house sooner than you think.

"First time buyers may be more tempted to dip into their deposit savings this year because of the uncertainty in the market and prospect of falling house prices; however there are still very good reasons for people to get on the housing ladder, as property continues to be a good investment for the longer term."

In a survey carried out by the firm, around 53 per cent of the savings raiders cited increasing costs of living as a reason for the spending.

Around one quarter used the money to buy a new car - and four per cent funded weddings or other celebrations.

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