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

First-time buyers need average £31k deposit

0
Written by:
25/04/2019
The size of the typical deposit required by first-time buyers in order to get onto the housing ladder jumped by 12 per cent according to credit rating firm Experian.

Research by Experian suggested that first-time buyers needed to find a deposit of around £30,989 in order to purchase a first home in 2018.

This is up sharply from the average deposit of £27,768 reported by first-time buyers in Experian’s credit barometer a year ago.

The latest study found that just one in four people searching for mortgages had an Experian credit score in the ‘excellent’ band. Around 30 per cent of searchers had scores of either ‘poor’ or ‘ very poor’, making them unlikely to be approved by any lender.

Experian’s study found that three-quarters of would-be borrowers were specifically looking for fixed rate deals in April. This is up from 72 per cent in March, but down from the 81 per cent identified in February.

Amir Goshtai, managing director of Experian Marketplace and Affinity, said that is was understandable that putting together a deposit could seem overwhelming for first-time buyers, and noted many are reliant on some form of financial support from their loved ones.

Goshtai added: “When people can buy, most are looking at the security of a fixed-rate deal, giving them the assurance of the same monthly payments over the length of the mortgage.

“However, searches for fixed-term mortgages did reduce slightly, which may have been the result of consumers anticipating a resolution to Brexit discussions and greater certainty in the economy.”

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.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

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...

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...

Money Tips of the Week

Read previous post:
South East ‘DIY Capital’ but East Midlands catching up

The South East is the UK’s DIY capital: households in the region borrow more for home improvements than anywhere else.

Close