First-time buyers need up to £30k deposit for 95 per cent mortgages
Aspiring homebuyers could need as much as £29,270 saved for a five per cent deposit once 95 per cent loan to value (LTV) mortgages return, Barclays has revealed.
The bank will be one of the first to offer government-backed 95 per cent LTV mortgage in April, as announced by chancellor Rishi Sunak in the Budget last week.
Buyers in Northern Ireland will need the smallest deposit of £7,391 based on the average house price of £147,836.
Purchasers in Northern England, Scotland, Wales, Yorkshire & Humber and North West England will need no more than £10,000 saved to meet the minimum deposit.
Buyers in the Midlands need a little more, with five per cent of the average East Midlands property totalling £10,599 compared to £10,710 in the West Midlands.
The most expensive region for a first-time buyer is Greater London, where a minimum deposit of £29,270 will be needed.
This is notably higher than the second most expensive region, South East England, where £18,280 will be required.
Clare Francis, director of savings and investments at Barclays, said: “Saving for your goals can be a slow process, particularly if you are aiming for something like your first home. However, lots of little changes will add up over time and make a big difference to helping you get there.”