The BSA's research found that other significant barriers are the mortgage repayments themselves, followed by stamp duty and the legal/valuation costs.
Adrian Coles, director-general of the BSA said: “It is no surprise that with the average house price being almost £220,000, raising a deposit is such a barrier for first-time buyers. Even a 10 per cent deposit necessitates saving over £20,000, a sum out of reach of many potential buyers who have no existing housing equity.
“With societies being anxious to help people onto the housing ladder, it is no surprise that many make 100 per cent loans available to buyers who can afford the repayments on such a mortgage, allowing them to circumvent the need for a deposit.
“Our research has demonstrated the wide range of mortgages that societies provide to first-time buyers, reflecting both the diversity of the building society sector and their enthusiasm for responsibly helping first-time buyers.”
Coles also criticised government schemes such as Open Market HomeBuy and Shared Ownership, saying that they tend to overlook the bigger problem of a deposit, believing it is the monthly repayments which pose the largest issue.
