The latest research from the Nottingham Building Society has shown that over 1 in 3 first-time buyers have missed out on purchasing a property because their deposit was too small and around half had more than 10% of the purchase price saved.
According to the figures, 35% of would-be first-time buyers saw house deals fall through in the past year because their deposit was too small to secure a mortgage. Around 18% say they had a deposit of less than 10% while 17% had less than 20% of the house price they were planning to buy.
Council of Mortgage Lenders figures show total borrowing by first-time buyers hit a record of £53.2 billion last year with more than 338,900 loans completed and that the average loan-to-value is currently around 84.3% on loans of £132,400.
But The Nottingham’s research found first-time buyers are still struggling to buy the homes they want despite having saved deposits. More than half (51%) of first-time buyers say they have a deposit saved before looking to buy.