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Big Deposit or Big Myth?

Wed 23 Oct 2019

Accounting for 36% of all property sales in the UK, first-time buyers will remain the largest buyer group over 2019. * 

That’s following first-time buyers accounting for the majority of home purchases for the first time since 1995 last year. ** 

Not only are first-time buyers making the most property purchases, but they are also typically taking a longer-term view, seeking three-bedroom properties they can grow in. * 

For this sub-group of purchasers, terraced houses have continued to be the home of choice, closely followed by semi-detached properties, making up 67% of mortgages for first homes in 2018. ** 

The biggest obstacle that first-time buyers point to in getting on the property ladder is saving enough for a deposit.  

In fact, 22% of aspiring first-time buyers currently live with their parents to save for a deposit, while 33% of parents say they have had to sacrifice saving for retirement as a result of the associated extra outgoings. *** 

However, is the need for a BIG deposit just a BIG myth?  

When people talk about a house deposit, there seems to be a consensus that you need to save a certain amount of money before you’re even considered to be mortgage ready, usually 10%

However, that isn’t necessarily the case and there is no definitive average mortgage deposit. In truth, the amount of deposit you need for a mortgage as a first-time buyer depends entirely on the region you’re looking to buy in and the value of the property. 

The good news is that in Wales we pay the lowest average property deposit in the UK, at £16,449. ** 

So why not speak to one of The Mortgage Advice Bureau’s advisors and find out exactly where you stand?

For instance, you may find that you can put down a 5% deposit which, while limiting the mortgages available to you, gets you on the property ladder and gaining equity if the property value increases. 

They can also advise you of what help is out there for you. For example, the government has schemes such as the Lifetime ISA. This means you can save up to £4,000 each year and the government will top this up with a 35% bonus. 

Luke Austin, CeMap, Mortgage and Protection Advisor in our Roath branch would be happy to hear from you and give you his expert advice... 

Tel: 029 20 48 48 98 

PS: Want a SOLD or LET sign outside your property quicker?  
For more honest, expert and friendly advice call our team on 029220 730 887 or email: 

*Source: Financial Reporter - Zoopla  

**Source: Lloyds Bank - Halifax First-Time Buyer Review 

***Source: Aldermore - Halifax First-Time Buyer Review 


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