Homebuyers need to find an average deposit of £26,468 to buy a home in England and Wales, new analysis from housing investment and shared equity mortgage provider Castle Trust shows.
Using Land Registry data, Castle Trust has found that regional differences on a 20 per cent deposit vary between £14,470 in Blackburn and five times higher than that at £72,760 in London.
Its analysis of the top 30 cities and regions in England and Wales shows that the second most expensive area to buy is Reading with deposits at £39,789 and the second cheapest area is Blackpool at £15,707.
Castle Trust, which aims to provide a safer way to buy a home and a safer way to invest in property, is advising homebuyers – and parents or family who may be helping children on to the housing ladder – to consider all their options when raising deposits.
Sean Oldfield, chief executive officer, Castle Trust said: “Parents and grandparents are being called on more and more to help children with their first deposit and the proportion of the population owning their own home without family help is likely to continue to fall.
“Aspiring homeowners need alternatives to borrowing from family which is why the government has launched a range of initiatives including NewBuy and FirstBuy.
“However, private companies need to play a role as well in offering innovative and affordable ways to help those who want to buy homes and Castle Trust is determined to play its part with housing investment and shared equity products.”
Partnership Mortgages from Castle Trust are for 20% of the value of an owner occupied home alongside a repayment mortgage of up to 60 per cent from a traditional lender and a deposit or equity of at least 20 per cent.
There are no monthly payments on the Partnership Mortgage and Castle Trust will share 40 per cent of any profit made by the homeowner when they sell or come to the end of the mortgage term. The company will also share 20 per cent of any loss made on a home bought with a Partnership Mortgage.
