JSMedia – The Council of Mortgage Lenders has announced its figures for the average deposit required for first-time buyers. As of September 2017, the average first-time buyer’s deposit was around 17.6% of the property’s value.
In the same period, the average deposit for second-time buyers was around 17.8% of the property’s value. During this period, the average deposit was also lower than in other years.
The increase in lending is partly attributed to rising confidence among lenders and increased demand from homebuyers.
Council of Mortgage Lenders Figures, Giblin Property
Help to Buy and the Funding for Lending schemes have boosted activity at higher LTVs, and rising house prices have been credited for supporting the market. More Help to Buy mortgage applications are anticipated, so lending is expected to increase even further. The figure for lending under the scheme is more than double last year’s.
The figures show that lending for second-time buyers has increased by nearly 12% in the first half of 2013. The increase in lending for this sector can be attributed to several factors including higher house prices and increased confidence in the wider economy. The Funding for Lending scheme, which is aimed at boosting lending at higher LTVs, is a major contributing factor. It has resulted in around 2,000 new applications for mortgages with the help of Help to Buy. As more help to buy mortgage applications are expected to be approved, the overall amount of lending for this sector will likely increase.