The typical deposit put down by a first-time buyer in July was £30,945 – a rise of nearly 20% on the previous year.
That’s according to data from Experian, which has been monitoring use of its mortgage-search facility to find out more about the types of loans people are taking it out.
It found those looking for their first mortgage were squirrelling away 17% more on average in July this year than in the same month in 2018, when the average deposit saved was £26,498.
Experian said this suggested first-time buyers were having to save an increasing amount to secure their first home.
Demand for first homes strong
But despite the fact the cost of getting on the property ladder had soared so much in only 12 months, the number of people buying their first home had not been affected.
Indeed, Experian said first-time buyer demand remained relatively high in July 2019 with those taking their first steps onto the housing ladder being responsible for over half of all mortgage searches through its services.
One in five searches were from people moving home and 27% were from those remortgaging their property.
Challenges remain
Amir Goshtai, managing director of Experian Marketplace and Affinity said its ‘Credit Barometer’ showed it continued to remain challenging for younger people to get their first foot onto the property ladder with deposits continuing to grow.
This meant, he said, finding the right mortgage deal to make the most of their deposit was crucial.
He added: “Low interest rates and falling house prices in certain areas mean now is an optimum time for first-time buyers and home movers alike to make sure they get the best mortgage deal.
“Fixed-rate mortgages remain a popular option with the British public as people look for stability and security in fixed monthly payments.”
Experian’s figures showed 88% of mortgage applicants were looking for a fixed-rate – these offer a rate which does not move for the length of the deal.
Only 6% of customers were searching for variable deals and 5% for trackers. Both offer rates which could move up and down according to external factors such as Bank of England interest rate rises.
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