Average first-time buyer deposits 'falling'

Posted: 15 Sep 2009 10:13:45 GMT

The average first-time buyer mortgage deposit has decreased every month since June, according to new research.

Independent mortgage adviser website Mortgageforce has revealed that lenders demanded an average of 21.25 per cent in August, which was down from 28.6 per cent in June and 25.4 per cent in July.

Katie Tucker, technical manager at the site, said that there are a number of good deals available on the market at present.

"The ongoing stability of house prices reduces the risk of negative equity and repossessions that lenders are keen to avoid, so we should see more accommodating terms from them now," she added.

Earlier this week, director of MyMortgageDirect Catherine Hearnden said that some property owners in the UK are paying "silly money" for their mortgages due to the low Bank of England interest rates.

She suggested that some people on tracker mortgages are spending "virtually nothing" on home loan repayments.


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