First Time Buyer Deposits up by 66% since October

27th March 2008

First time buyer deposits have rocketed since October, rising by 66.5% from £16,824 up to £28,012 now. Deposit sizes, requested by first time buyers coming through Leadbay, have far outstripped the property price increases which have increased by just 12.4% over the same period.

It is harder for first time buyers to get on the property ladder however: The average age of first time buyers coming through the Leadbay system has risen from 29 to 31 over the same time period, indicating that people need to save for longer to afford their deposit; and the number of first time buyers has declined by 24% clearly displaying that they are finding it more difficult to save for a deposit.

The good news for advisers is that there are still large numbers of first time buyers and that as deposits have soared, the average first time buyer is now looking for an LTV of just 83% down from 89% LTV back in October meaning it will be easier to place the mortgage.

Toby Hughes, Leadbay's Innovation Development Manager says, "Borrowers with bigger deposits are obviously now coming to the market taking advantage of the current buyers' market.

"First time buyers offer great return on marketing investment for the mortgage adviser due to the fact that they have a wide range of opportunities for cross selling other products such as life assurance and have great potential lifetime value."

Notes for editors Leadbay forms a part of Add Momentum which launched in the summer of 2003. It focuses on delivering innovative services that are customer-focused and easy to use. Its ethos is to bring people and technology together; to help people to fulfil potential, achieve new things and make a real difference.

back to news