The average first-time buyer deposit was almost £4000 lower in the last financial year, according to a new government housing survey. The question is… could you have saved enough deposit to buy a property without even realising it?
The annual England housing survey revealed the typical deposit paid by first-time buyer in 2017/18 was £44,632, down from £48,591 the year before. This means its fallen by £3,956 or 8.14%. Fortitudo have taken a closer look at how first-time buyers have achieve their home ownership dreams and offers advice of how you can too get yourselves onto the property ladder.
Are things getting better for first-time buyers?
It is becoming increasingly more accessible to first time buyers to get onto the property ladder in the UK. There and now many different government schemes helping thousands to follow their dream of owning their own home. These schemes include Help to Buy equity loan, Shared Ownership and Help to Buy ISA. Furthering this, mortgage rates are falling and mortgage lender is becoming higher, with Banks including Lloyds lending 100% of the property purchase price.
How do first-time buyers buy their home?
More than half (56%) of first-time buyers bought their home jointly with a partner or spouse while 43% bought alone, according to a recent survey. Almost all first-time buyers in England (99%) had a repayment mortgage. Nearly half 46% had a mortgage of 30 years or more, 50% had a deal lasting 20-29 years, while a small proportion 3% had a 1-19 year mortgage. Borrowing for longer can help improve your mortgage chances. By spreading repayments beyond traditional 25 year period you can lower your monthly repayments which can help you meet strict affordability requirements.
First-time buyer have never had it so good
Brexit uncertainty Is making it easier for first-time buyers to get a good deal on a home. House prices have stagnated in some parts of the country, especially in London. The fewer number of buyers around has forced some sellers to accept offers below asking price. As well as taking advantage of the current ‘buyers’ market, first-time buyers can also benefit from historically low interest rates on their mortgage. This has led to monthly mortgage repayments being lower than rent in most of the UK.
Are you ready to buy your first home?
If you’ve started saving for a home and are itching to take that first step onto the property ladder make sure you check out our developments and secure your new home today with a reservation fee for as little £500 for Help to Buy users and £1000 for non-Help to Buy. To see what we have becoming available in 2019 head over to our website.