Average first time buyer deposits around the country

Since the lockdown, the number of low deposit mortgage deals has dwindled. This is one of the main reasons that first time buyers are finding it hard to get onto the property ladder during the coronavirus pandemic.

If you really want to get onto the property ladder, one thing to consider is buying property in a more affordable area.

You might have a 10% deposit for a 2-bed flat in London, but the same amount of money could give you a 25% deposit on a similar property in Brighton.

Or a 10% deposit for a 3-bed semi in Oxford could be the same as a 20% deposit for the same type of property just over the border in Gloucester.

Take a look at the map above to find out the average deposits for first time buyers around the country. This is based on Trussle's own data for first time buyers that have used our free mortgage advice.

You can search by the first two letters of a postcode or the name of the postal district. For example, IP for Ipswitch or SW for South West London.

Staying at the Hotel of Mum and Dad

We surveyed 2,000 first time buyers around the country and found that 40% need family support to afford the mortgage on their first home.

We also found out that 14% of first time buyers have already checked into the Hotel of Mum and Dad so that they can save on rent and build up a deposit.

With house prices increasing faster than salaries, first time buyers might be living with their parents for a long time before they can afford a house.

Based on the data from the Office for National Statistics, and assuming they can save 1/5th of their income while living at home, we estimate that it'll take between 7 and 11 years for first time buyers to save up a 20% deposit to buy a home.

Take a look at the map below and see how long you might be staying at the Hotel of Mum and Dad around the country.

69% of first time buyers priced out of the market by coronavirus

We surveyed 2,000 first time buyers around the country and 69% said that they were waiting for the coronavirus pandemic to pass before trying to get onto the property market.

Buying a home is stressful at the best of times, but combined with the pandemic it's causing serious issues among first time buyers.

76% of first time buyers told us that they're worried, confused and angered by the pandemic's impact on their home ownership aspirations. 65% of first time buyers described the current situation as "impossible".

The situation differs around the country. Generally, first time buyers in the north east of England are finding it easier to get on the property ladder than those in the south.

5% and 10% deposit mortgages have almost disappeared

According to our own data, in October there were just 81 mortgage products available if you have a 10% deposit, down from just over 1,600 in January.

5% deposit mortgages are even worse. There are just 26 deals available, compared to 633 in January.

Overall there has been a 95% reduction in the number of low deposit first time buyer mortgages.

There are still plenty of mortgages available if you have a 15 or 20% deposit. But it can take months or even years to increase the size of your deposit from 10% to 15%.

Which lenders are accepting furlough and Bank of Mum and Dad?

Because it's so hard to get a mortgage with a 5 or 10% deposit, many first time buyers are asking close family members for help.

Luckily most big lenders will accept a deposit from a close family member, as long as it's a gift and not a loan.

If you're currently furloughed from work, though, you may struggle to find a lender willing to give you a mortgage.

At the start of the first lockdown most lenders would accept your furloughed income if you had a letter from your employer proving you will be returning to work.

Today it's a different story. Many lenders will not lend to you unless you've returned to work.

Compare our best first time buyer mortgage deals

Use our mortgage comparison table to find a first time buyer mortgage deal. If you find a deal that suits your situation, click Continue and you can talk to one of Trussle's expert mortgage advisers.

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