Average deposits falling
Research carried out by national brokerage Mortgage Advice Bureau found the typical deposit fell by 6% to hit £66,259 between September and December 2013.
This figure includes all types of residential mortgage deals for first-time buyers, home movers and remortgagors.
The impact was most strongly felt in southern areas with the average deposit falling 12% in the South East and 7% in Greater London.
However, mortgage customers in East Anglia saw their average deposit shoot up by 17% with those in Yorkshire and Humberside facing a 10% hike. The broker firm said total mortgage product numbers had risen for a third successive month to a reach 12,106 at the end of the year, with three-year fixed rates and two-year tracker rates at a six-and-a-half year low.
Brian Murphy, head of lending at Mortgage Advice Bureau, said:
“It’s encouraging to see a situation emerging where deposit requirements need not block aspiring buyers from taking advantage of growing choice and improving rates.
“The stagnant property market of recent years has been firmly consigned to the past and activity levels look set to keep on rising this year. Mortgage lenders have not been shy about launching increasingly competitive offers at 90-95% LTV.
“With regional building societies competing alongside high street lenders, it should mean the benefits are shared among buyers across the length of the country.”