New Mortgage Guides

Other Mortgage Guides

Mortgage Types

Mortgage Tools

Deposit needed to buy a home soars, according to expert
Wed, 27 Aug 2008
The level of deposit needed for the best mortgage deals on the market has risen by 43 per cent in the past year, it has been claimed.

Figures from mfrom.co.uk show that the typical homebuyer will now need a deposit of £37,119 to be able to afford a new home .

This amount has increased from £20,980 in the past 12 months, notes the mortgage company .

It asserts that people are now expected to have a deposit of 20 per cent or more, due to falling property prices and fears over negative equity .

People house-hunting in London require the largest deposits, with a down payment of £71,616 giving them access to the best rates for an average-priced house worth £345,000.

Francis Ghiloni, marketing and business development director at mform.co.uk, says: "There are still competitive deals and lenders willing to offer 95 per cent loans, but the most competitive offers are being restricted to people with big deposits or substantial equity ."

He adds that first-time buyers may struggle to qualify for competitive rates.

In related news, the British Bankers' Association said mortgage approvals by its members for house purchase totalled 22,448 in July, 65 per cent last year's levels.

Link to this page

Copy and Paste the following HTML into your page.

Mortgage lenders

Browse mortgage lender offersMortgage Rates by Lender

  • Browse current mortgage offers from over 90 lenders.
Browse

Worried about mortgage repayments?Worried about Mortgage Repayments?

  • Join our petition to Government to bail out burdened individuals, not just banks.
Sign the petition

Free mortgage quoteFree Mortgage Quote

Apply Here

Mortgages in Scotland Mortgages in Scotland

Read More

Equity releaseEquity Release

  • Unlock equity in your home.
Apply Here

Switching mortgagesSwitching Mortgages

Read More

Home reversion plansHome Reversion Plans

Apply Here

Commercial mortgages Commercial Mortgages

  • Commercial property loans
  • Starting a business?
Apply Here

Arrears & CCJs?

  • Remortgages
  • Sub prime mortgages
  • Arrears, CCJs
  • Self certification
  • Debt consolidation
Apply Now

Protect your mortgageProtect Your Mortgage

  • 3 months free mortgage protection cover
Apply Now

Mortgage Newsletter