You are here: Home - Mortgages - First Time Buyer - News -

FTBs lose out on properties as deposits ‘too small’

0
Written by: Heather Greig-Smith
25/04/2017
First-time buyers are missing out on home deals despite having deposits of over 10%, according to Nottingham Building Society.

More than one in three first-time buyers saw house deals fall through in the past year because their deposit was too small to secure a mortgage. Around 18% had a deposit of less than 10% while 17% had between 10% and 20% of the house price they were planning to buy.

Council of Mortgage Lenders figures showing growth in total borrowing by first-time buyers, but the Nottingham said many are still struggling to buy the homes they want, despite 51% saving a deposit before looking.

Ian Gibbons, senior mortgage broking manager at Nottingham Mortgage Services, said: “Borrowers with small deposits have a wide choice of loans to pick from but clearly many are struggling to buy the houses they want with so many potential deals falling through.

“It is particularly worrying that borrowers with a 10% deposit or more are struggling. They should be able to secure a mortgage and not have to miss out on house purchases simply because their deposit is too small.”

The Nottingham’s research found that more than two out of five (42%) of first-time buyers would be comfortable borrowing 15% or more of the purchase price of their first home. Around 10% would be willing to borrow 100% of the price.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
2260122-pounds-money
Pension rule changes shelved ahead of General Election

The government’s plan to cut the tax relief on recycled pension savings has been put on hold in light of...

Close