Monday, September 13, 2010
First-time buyers need largest deposits since records began
Mortgages granted to first-time buyers dropped to 19,400 from 19,700 in June and 20,100 a year earlier, the Council of Mortgage Lenders reported. Lending to FTBs in the three months to July rose by 8pc compared with the same period a year earlier, the slowest growth in almost a year. The average FTB deposit size was 24pc of the cost of a property, the same as in June but higher than the 21pc deposit required in the two months before that. The size of deposits compared with home value remains close to its largest since records began in 1979. With the Bank of Englandâ€™s policy rate at a record low, interest rate costs are relatively subdued. First-time buyersâ€™ interest takes up 13pc of income â€“ the lowest since 2004. "The mortgage market remains dominated by the cash-rich."