First-time buyers still require hefty deposit

| December 29, 2010
First-time buyers still require hefty deposit

Research from the Halifax has revealed first-time buyers are still struggling to get onto the property ladder unless they have a hefty deposit.

The mortgage lender said a first-time buyer has to find at least £29,000 in order to secure a mortgage, while those in London require almost double that (£50,000).

Since the credit crunch more than three years ago, banks and building societies have tightened their lending criteria and securing a mortgage has become much more difficult.

However, despite the figures, the Halifax said affordability is at its best since December 1998 and this has been attributed to lower house prices, together with falling mortgage rates.

Meanwhile, the Halifax said the average age of someone purchasing their home during 2010 remained unchanged at 29.

Martin Ellis, housing economist at Halifax, said: “The ‘noughties’ were a difficult period for many looking to get onto the property ladder.”

“The substantial rise in house prices over much of the decade prevented many potential first time buyers from entering the market, however, affordability has improved significantly over the past three years,” he added.

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