Deposits rise for first-time buyers
Published On 20 December 2007
First-time buyers in the UK are facing a tough time saving a deposit for a house, according to a new study, made worse by the fact many people are now buying alone.Research carried out by Money Extra found that to achieve the average first-time buyer mortgage of £133,943 buyers have to save a deposit worth two years' average earnings.
According to the report, property value has risen 2.3 per cent in the year to November 2007. The average property value is £227,484, but for remortgagers this increases to £256,868.
"The sharp rise in property values of those remortgaging may be an indicator of how the credit crunch is extending beyond the traditionally vulnerable sectors of society," said Robin Amlot from Money Extra.
He added that conditions could remain tough for homeowners in 2008, with an "uncomfortable journey" to lower interest rates ahead of them.
Recent figures from the Council of Mortgage Lenders revealed that the number of mortgage loans to first-time buyers declined to 35,600 in June this year, down from 39,800 for the same month in 2006.
