Santander research shows average first time buyer deposit is 17%
New research from Santander Mortgages reveals that first-time buyers have required a 17 per cent deposit to get onto the property ladder over the last 12 years and take, on average 29 months to save up for it.
The research reveals the current average deposit required is 15 per cent. 17 per cent of first time buyers have managed to get their foot on the ladder with a deposit of between six and ten per cent, whilst 3.5 million (12 per cent) have put down a deposit of between 11 and 20 per cent to buy their first properties.
One in ten has managed to put a deposit of fifty per cent down and a further 15 per cent have brought the property outright.
More than four out of ten first time buyers have relied on their savings, whilst eight per cent used money from an inheritance, six per cent used money given to them by parents, five per cent of new homeowners took an extra job to help them get on the property ladder and four per cent took out a loan.
Phil Cliff, Director of Santander Mortgages, commented: "Our research has found that despite the availability of 5 per cent deposit mortgages throughout most of the noughties, first time buyers opted to put down an average of 17 per cent deposit to secure their first home - over two per cent more than the average deposit currently paid now.”
First time buyers in the South West save up the largest deposit, putting down an average of 20.7 per cent initially. Those in the north-east put down the lowest deposit, averaging just 8.9 per cent.
New home buyers in London proved to be the most independent with 57 per cent or 1.6 million using their own savings to put down as a deposit, closely followed by those living in Wales.
Santander has just released a new two year fixed Homebuyer product at 90 per cent LTV, at 5.29 per cent with £495 upfront fee.
Use the Myfinances.co.uk comparison tools to find the best deal on a new mortgage.
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