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Average mortgage deposits at record high
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
Britain’s house buyers are putting down record deposits on homes, according the latest figures released from the Mortgage Advice Bureau.
Home hunters are now collating deposits averaging £72,302 according to the Bureau, which is the highest amount since the broker started recording the figures in March 2009. The previous highest was £71,474 recorded in June of last year.[1]
Hikes
Increasing house prices are leading homebuyers to have to find larger deposits. However, the rise in equity is enabling those already established on the property ladder to put down more money on their new home. As a result, the average property deposit as a proportion of a loan increased from 28% to 30%.[1]
The Mortgage Advice Bureau’s index was put together using figures from in excess of 600 brokers and 900 estate agents. Their findings showed that typical mortgage and deposit sizes reached record highs during last month, with the average homebuyer applying for a mortgage of £167,842. This represented an increase of 1% from April.[1]
Average mortgage deposits at record high
Research from the broker also found that borrowers are using more of their own cash to try and scale the property ladder. There has been a 4% rise in the average deposit size during the last year, which goes hand-in-hand with the 4% growth in the average loan value.
Fresh affordability features brought in over the last year have managed to keep lending activity at an even pace, the broker suggests.
Affordable
‘Putting up a 30% deposit helps to unlock some of the best rates on the market and helps keep mortgage payments even more affordable,’ said Brian Murphy, head of lending at the Mortgage Advice Bureau. ‘The rise of deposits is less encouraging for first time buyers but there is at least some hope that more low cost properties will become available as second and third-steppers make their move up the ladder,’ he added.[1]
[1] http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/11700531/Average-mortgage-deposit-hits-record-72000.html
