First time buyers are typically saving £31,000 for a mortgage deposit, according to research from Experian.
The credit-scoring website says that the figure represents an increase of more than £3,000 from the past 12 months, highlighting just how challenging it can be for new buyers to take their first steps onto the property ladder.
How much are first time buyers putting down?
The exact figure, according to Experian, is £30,989, showing a 12% increase from January last year when the average deposit for first time buyers stood at £27,768.
Where do the findings come from?
The research is based on searches carried out using Experian’s mortgage eligibility tool, which allows prospective home buyers to input their data to determine how likely they are to have their mortgage approval accepted.
Other studies have shown different results. According to the most recent English Housing Survey, the average first time buyer deposit had fallen by almost £4,000 in the financial year 2017/18 - but the average down payment still stood at £44,465.
How many first time buyers are fixing their mortgage?
In April, three-quarters of potential home buyers were looking for fixed rate deals specifically, an increase from 72% in March but fall from 81% in February.
With the Bank of England’s base rate still standing at the lower end of the scale and countless lenders offering low-interest mortgage deals, it’s little surprise that buyers are locking themselves into fixed rate deals and protecting themselves from rate fluctuations.
Amir Goshtai, managing director of Experian Marketplace said: “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.”
If you’re a first time buyer looking for help obtaining a mortgage, please get in touch with the team at TaylorMade. We can help you find the most suitable mortgage deal for you and potentially save thousands of pounds over the course of your deal.
