Deposits for First Time Buyers Are Increasing

Wed, 28 Mar 2007

First time buyer deposits have gone up 11% since 2006 so new data shows.

Moneyextra.com data shows that stepping onto the property ladder continues to expand first time buyers ' finances more and more, with the average deposit reaching £37,632 in February.

First time buyers have been helped a bit by price rises falling behind the housing market average, 4.68% compared to 7.38% in the last 12 months.

The present average first time buyer property will set you back £177,096, £50,000 less than the current national average of £222,923.

It is not a surprise that the lower end of the housing market is being held up with young people trying to get onto the housing ladder, as a potential first time buyer is expected to have saved a sum equivalent to more than 18 months' salary.

In February the average first time buyer mortgage was £139,464, with an average loan to value rate of 79%.

In comparison owner occupiers who are moving home borrowed £166,270, with an average loan to value rate of 62%.

First time buyers are so stretched with their mortgages . Owner occupier as well as first time buyer income levels are pretty close in terms of finances, with the average income of the main household earner being £46,365 and £38,638 respectively.

In addition, the average second income of owner occupiers who are relocating home and first time buyers are practically the same, £21,967 in contrast to £20,438 for first time buyers.

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