What is the average deposit for first time buyers

This statistic is not included in your account. Skip to main content Try our corporate solution for free! Single Accounts Corporate Solutions Universities. Premium statistics. Read more. This statistic illustrates the average deposits for first time buyers in the United Kingdom UK in Greater London was the most expensive region for first time buyers with average deposit of over , British pounds.

In comparison, the average deposit for the UK was approximately 57, British pounds and for Northern Ireland, the region with lowest average deposit 30, British pounds.

You need a Single Account for unlimited access. Full access to 1m statistics Incl. Single Account. View for free. Show source. Show detailed source information? Register for free Already a member? Log in. More information. Keep reading to find out how to save a deposit in significantly less than 15 years. And you can continue to save in the same way and earn the bonus in subsequent years until you have built up a large enough house deposit.

Bear in mind you need to have saved for a minimum of one year to be able to withdraw your cash and keep the bonus and the money must be used to purchase a property or for retirement. This is only applicable if you already have the account. Rent is probably your biggest monthly expense. Reducing your rent by moving somewhere more affordable could help you save up for a house deposit more quickly.

Remember to factor in moving costs when making your decision. If your parents live close enough to where you work, could you move back in with them for a while? It may feel like a backwards step but think about your potential savings.

You're unlikely to get a mortgage if you use a personal loan to pay for your house deposit. When you apply for a mortgage, lenders will look at any debts you are currently paying off. By taking out a loan or using a credit card to pay your deposit, you significantly reduce your chances of being approved for a mortgage. This means it will take a lot longer to pay off your mortgage and you will pay more in interest. Your monthly repayments will also be higher which could make life a lot more difficult.

If you have a small house deposit, you could use one of the government's Help to Buy schemes to secure a mortgage. The loan is interest free for 5 years, after which time most people sell the property to repay the loan and use any extra money to buy a new home. If you're remortgaging , you can use the equity you already have in your home as a deposit. Equity is the difference between the market value of your home and the outstanding balance left on the mortgage. Unless your house has gone up in value, you will not have equity when you remortgage from an interest only deal.

You are likely to have to pay a higher interest rate on a second home mortgage and will also need to prove you can afford the payments on two mortgages. As with other types of mortgages, a bigger deposit will give you access to lower interest rates.

The lower the LTV, the lower your interest rate is likely to be. This is because the lender takes less risk with a smaller loan. To work out how much you can afford, use our Mortgage affordability calculator. As a first-time home buyer, the most important thing to bear in mind is whether you can really afford to take this step. But you might also want to think about using a regulated mortgage adviser. Advisers know a lot about the mortgage market and can help you find the mortgage that best suits your needs.

Comparison websites are a good starting point for comparing mortgage interest rates. You can use these websites to compare mortgages:. There are many different types of mortgage on the market, and understanding these options will help you make the right choice. The first thing to think about is the interest rate. Most people start out on a fixed rate deal for a set number of years. This is unless you switch to another mortgage with your existing lender, or re-mortgage to a new lender.

Repayment mortgages are the most common, where you make monthly payments for the amount you borrowed and the interest. This means you own the property and the land it sits on. Applying for a mortgage can seem like a long and confusing process, with a lot of forms to fill out. This is a detailed look at your finances, which lenders use to work out if you can afford your long-term repayments.

This includes a range of family assist mortgages. MoneyHelper is the new, easy way to get clear, free, impartial help for all your money and pension choices. Whatever your circumstances or plans, move forward with MoneyHelper. Download app: WhatsApp. For help sorting out your debts or credit questions. For everything else please contact us via Webchat or telephone. Got a pension question? Our help is impartial and free to use. Get in touch online or over the phone on Benefits if you have children Entitlements to help with the cost of pregnancy or bringing up children.

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Death and bereavement Wills, inheritance, sorting out estates. Divorce and separation Sorting out money and homes, what if you have children, money after break ups. Illness and disability Managing costs, extra financial support, help with work or study. Get the initial paperwork completed in advance, such as providing IDs and bank statements. Doing this in advance will mean you are ready to apply for searches at the earliest opportunity. A lot of people will take the estate agent at their word regarding the price you will have to pay to secure a property.

There are tools on the internet that can help you estimate an accurate value of the property, such as previous sales data for similar nearby homes. Sell your position as a first-time buyer with no chain. If you can move quickly and offer the certainty of an uncomplicated sale, this could be more valuable to the seller than just getting the highest price.