First-time buyers were responsible for over half of all mortgage searches through Experian in July, but the average amount saved for a deposit has risen £4,447 since last year. The increasing costs of deposits means that it remains challenging for first-time buyers to get on to the property ladder, and a lack of new buyers may cause the mortgage market to stagnate.
With the Association of Mortgage Intermediaries projecting a rise in arrears, new buyers may be key to balancing the mortgage market.
Lenders should consider their position in supporting first-time buyers whilst ensuring they asses affordability to mitigate arrears. Ascent has a deep understanding of the industry our clients operate within and can support lenders with managing arrears, whilst supporting their customers knowledgeably and fairly.
Average first-time buyer deposits have soared by 17% in the last year but demand for mortgages from this group has remained high, new figures have revealed. Data from Experian’s Credit Barometer revealed the average people said they had saved for their deposit in July 2019 was £30,945 – a hike of nearly a fifth on the typical £26,498 put by in July 2018. Experian said the statistics, which were published just after the Bank of England announced the base rate would remain at 0.75%, suggested those looking for a mortgage were having to save an increasing amount to secure the first home. But this factor appears not have hindered demand. Indeed, Experian’s figures showed first-time buyers were responsible for over half of all mortgage searches through its services in July.
