First time buyers 'need larger deposits' when buying a home

27-Mar-2007

First time home buyers are having to generate increasingly large deposits, a new survey suggests.

According to data released by AWD Moneyextra, in February, first time home buyers were required to generate an average deposit amount of £37,632 - an 11 per cent increase from the previous year.

Indeed, first time home buyers are borrowing with an average loan-to-value (LTV) of 78.75 per cent to purchase a property that, on average, costs £177,096.

To find out about the different ways of financing a first home, see our section ‘Affording Your First Home’.

"It's no wonder the so-called lower end of the housing market is stalling with young people attempting to get on the housing ladder being required to save a figure effectively equivalent of more than a year and a half's average earnings," said AWD Moneyextra.

Home movers however, require an average LTV of 62.33 per cent to fund a property with an average cost of £266,768.

AWD Moneyextra enables clients to compare financial products such as mortgages and credit cards.

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