First-time buyers (FTBs) in the UK are currently facing a sizeable mortgage deposit gap, new research has shown.
According to unbiased.co.uk’s Advice Drivers report, house hunters looking to secure a 75 per cent loan-to-value home loan on an average first-time dwelling could be faced with a difference of around £15,500.
It was demonstrated that a typical FTB is saving towards a £22,706 deposit, while the gap could serve to add more than £1,200 onto their yearly mortgage costs.
Karen Barrett, chief executive of the price comparison website – which is a free consumer resource – noted the study has revealed the marked difference between the amount FTBs are able to put to one side and the level required in order to take advantage of the market’s most competitive rates.
The industry figure stated: “While saving towards that initial deposit is no easy feat in the current economic climate, the figures show that if FTBs aim towards a larger deposit they could save significantly.”
She added this group is finding it difficult to make it past the application process as a consequence of lending criteria becoming tighter.
