The average initial cost of a first-time buyer’s (FTB) mortgage deposit has climbed by 41% (after adjusting for inflation) in the last decade1, new research has shown.
With the average UK house price currently sitting at £278,436, the largest initial hurdle facing homebuyers is the mortgage deposit. Based on the average of 15%, this initial outlay comes in at a hefty £41,765 – after adding stamp duty, surveyors’ fees and the cost of moving, the total can easily reach £50,000.
Just a decade ago, the average FTB deposit was £21,236. Such a rise illustrates the extra challenge many now face to get a foot on the housing ladder.
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.
1Barrows and Forrester, 2022