First-time buyers looking for secured a house in one of the 20 largest cities in the UK must deposit an average deposit of £ 10.606, according to Beehive Money.
Average deposits drop to £ 7,605 for an apartment or cottage, according to the savings app, owned by the Nottingham Building Society, which analyzed cadastral housing prices in the county’s largest towns by population.
The most affordable towns are Hull where the average 5% deposit for all properties is £ 6,066 and Preston where the 5% deposit for apartments or maisonettes is £ 3,820.
The most expensive city is London, where the required 5% deposit for all types of properties is £ 25,514 and £ 21,535 for apartments or maisonettes.
Other cities that require five-digit home purchase deposits include Birmingham (£ 10,412), Bristol (£ 15,388), Leicester (£ 10,314), Edinburgh (£ 15,416), Leeds (£ 10,647 ), Cardiff (£ 11,752), Manchester (£ 10,328), Coventry (£ 10,149) and Reading (£ 14,814), which the report says highlight ‘the strength of the property market and the cost of housing across the UK ”.
The government launched its mortgage guarantee program in April, to increase the number of mortgages available to 95% for FTBs and those looking to move up the ladder.
Moneyfacts data from September 15 showed more than 200 95% LTV mortgages are now available across the full range of fixed, discounted and variable rates, down from just 34 in March.
Ben Osgood, Head of Beehive Money, said: “The general fact remains that the larger the deposit, the more competitive the rates. They should speak to an expert mortgage advisor to get the right advice.
“Saving a deposit makes it possible to own this first property. The average 5% deposits shown in the data is still a substantial amount to save, and other buying and moving costs should also be taken into account, but this can be achieved with good saving habits.