ACCORDING to Santander, the average first time buyer deposit is currently standing at 17%.
First time buyers pay average 17 per cent deposit of overall property price – and take 29 months to save for it.
And one in four first time buyers rely on savings to get on property ladder
Almost one in five first time buyers (17 per cent) have paid between 6 – 10 per cent deposit on their first home, with 3.5m (12 per cent) putting down between 11 and 20 per cent to ensure they secure a foot on to the property ladder. Perhaps surprisingly one in 10 paid almost half of the full property price as a deposit with a further 15 per cent buying the property outright.
When buying their first home, over four in 10 (43%) first home owners counted the pennies and used their savings to enable them to take that first step on to the property ladder. A further 8 per cent relied on inheritance or used money gifted from parents (6 per cent). One in 20 (5 per cent) sought additional work while 4 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. The majority have done so via the ‘traditional’ route of savings.”