First-time buyers’ average mortgage deposits increased by 17 per cent over the last 12 months, according to Experian’s ‘Credit Barometer’.
The data shows that the average FTB deposit came to £30,945 in July 2019, up from £26,498 seen the previous year.
The top mortgage type searched by borrowers in July was ‘first-time buyers’, at 56 per cent. This was followed by ‘remortgage applicants’ at 27 per cent, and borrowers looking for their next property at 17 per cent, adds the firm.
Further research shows that 88 per cent of mortgage applicants searched for a fixed rate mortgage in July, compared to 6 per cent for a variable rate and 5 per cent for a tracker mortgage.
Experian says they believe this highlights that “borrowers remain watchful against a backdrop of uncertainty.”
Experian Marketplace and Affinity managing director Amir Goshtai says: “Our barometer shows it continues to remain challenging for younger people to get their first foot onto the property ladder with deposits continuing to grow, which means finding the right mortgage deal to make the most of their deposit is crucial.
“Low interest rates and falling house prices in certain areas mean now is an optimum time for first-time buyers and homemovers 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.”