A third of all first time buyer deposits are between six and 20% and one in four first time buyers are relying on savings to get on property ladder, the research from Santander Mortgages also shows.
Almost one in five first time buyers, 17%, have paid between six and 10% deposit on their first home, with 12% putting down between 11 and 20% to ensure they secure a foot on to the property ladder. One in 10 paid almost half of the full property price as a deposit with a further 15% buying the property outright.
When buying their first home, over four in 10, 43%, first home owners counted the pennies and used their savings to enable them to take that first step on to the property ladder. A further 8% relied on inheritance and 6% used money gifted from parents. One in 20, 5%, sought additional work while 4% took out a loan.
Deposits for first homes in the South West were the highest, at an average of 20.7% compared to London's 18%. Those in the North East averaged 8.9% of the property's value.
First time buyers in London were the most independent, with 57% using their own savings to fund the deposit for their first home. This was closely followed by first home owners in Wales at 55%.
Some 11% of buyers in Wales and Northern Ireland were equally willing to roll their sleeves up and seek additional overtime, while just 2% of East of England buyers relied on their parents to gift them the money.
‘Our research has found that despite the availability of 5% deposit mortgages throughout most of the noughties, first time buyers opted to put down an average of 17% deposit to secure their first home, over 2% more than the average deposit currently paid now. The majority have done so via the traditional route of savings,’ said Phil Cliff, director of Santander Mortgages.
Santander has today (Friday May 20) launched its new two year fixed Homebuyer product at 90% LTV, at 5.29% with £495 upfront fee aimed at the first time buyer.
