"Low interest rates and falling house prices in certain areas mean now is an optimum time for first-time buyers and homemovers alike"
The average deposit amount for a first-time buyer is now £30,945, a rise of 17% over the past 12 months, according to new research from Experian.
Despite this, first-time buyer demand has remained relatively high, making up over half (56%) of all mortgage searches through Experian’s services in July.
One in five (17%) were looking for a mortgage for their next home and the rest (27%) searching for a remortgage.
88% of mortgage applicants searched for a fixed rate mortgage in July, compared to 6% for a variable and 5% for a tracker mortgage.
Amir Goshtai, managing director of Experian Marketplace and Affinity, said: “Our barometer shows it continues to remain challenging for younger people to get their first foot onto the property ladder with deposits continuing to grow, which means finding the right mortgage deal to make the most of their deposit is crucial.
“Low interest rates and falling house prices in certain areas mean now is an optimum time for first-time buyers and homemovers alike to make sure they get the best mortgage deal.
“Fixed rate mortgages remain a popular option with the British public as people look for stability and security in fixed monthly payments.”