This is 2% more than the current average and has taken an average 29 months to save for, according to new research from Santander Mortgages.
Almost one in five first time buyers (17%) have paid between 6 – 10% deposit on their first home, with 3.5m (12%) putting down between 11 and 20% to ensure they secure a foot on to the property ladder. Perhaps surprisingly 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 or used money gifted from parents (6%). One in 20 (5%) sought additional work while 4% took out a loan.
Phil Cliff, director of Santander Mortgages, commented: “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.
“Santander understands the challenges that often face first-time buyers which is why we offer a number of products dedicated to their needs, including our latest 10% product at a 5.29% rate and £495 upfront fee available exclusively to Santander First Home Saver customers.”
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 meanwhile were the most independent, with 1.6m (57%) using their own savings to fund the deposit for their first home. This was closely followed by first home owners in Wales (55%).
