Average first-time buyer deposits increase by 76%: Mojo


First-time buyers now need to save an extra £15,000 to buy their first home, according to new research from Mojo Mortgages.

Data revealed that the average home buyer saves a £33,000 down payment to get on the UK property ladder, up from £18,000 in January 2021.

Mojo Mortgages also analyzed data from its mortgage partners to reveal that the average deposit size has increased from 16% of purchase price to 22% as the housing market continues to become more competitive.

Those living in the South West of England have felt the impact of increased deposits the most, with the average down payment doubling from £20,000 to £45,000.

Residents of towns such as Bath, Bristol and Cheltenham also pay deposits of nearly 25% of the purchase price, which is the highest in the UK.

Research also found that Londoners continue to have the highest average deposit at £61,000, up 74.3% from 2021, while Wales also saw deposit rates double, dropping from £14,947 to £30,000.

The East of England has one of the highest deposit sizes proportionally, with residents contributing nearly a quarter of the average house price, with deposit sizes dropping from 16.6% to 24, 49%.

While Yorkshire and the Humber have seen lower growth in deposit size compared to the other 11 regions, residents are paying one of the highest deposit proportions compared to the other regions at 22.35%.

Northern Ireland recorded the lowest growth in deposit size at just 1%, with the smallest deposit size also at 16.4% of total property value.

Commenting on the results, Mojo Mortgages Founder and Managing Director Richard Hayes said: “Inflation affects everyone as they have to deal with the squeeze in the cost of living. With the energy price cap rising and the high cost of food and gasoline, it’s no surprise that many first-time buyers are also worried about rising house prices. and how they can save enough money to buy a house.

“While two people buying together may be able to save the necessary cash more easily, someone looking to buy alone without outside support may find it more difficult to secure a deposit together.”

“However, while this research highlights the increase in the size of deposits, it is important for anyone considering getting into real estate to speak with a mortgage broker, no matter what stage you are at. This will help you better understand your financial situation and what you can afford, which will help you get closer to buying your first home.

Previous Mortgage prisoners launch £800m class action against TSB
Next Lack of "respect" in the relationship between the agent and the dog carrier: Coadjute