It said that one in 15 of those looking to buy admitted that they had already been turned down by a mortgage lender.
Karen Barrett, chief executive of Unbiased, said: “A whole of market mortgage adviser will be able to clearly explain your options and look at all the mortgage deals available to you in the market.
“They will be able to advise you based on your current financial situation and future plans ensuring that you get the best deal and most affordable monthly repayments possible.”
Unbiased added that the deposit gap first-time buyers faced between a 85% and 75% loan to value loan had increased to £15,500. The Department for Communities and Government’s latest figures show the average first-time buyer property cost just over £153,000.
Best buy tables showed that the most competitive 85% LTV deal borrowers could access was 3.34% for a 2-year fixed rate repayment mortgage. This would mean a monthly repayment of around £640.
However at 75% LTV, best buy tables showed that 2-year fixed rate deals were available from 2.89%.
On a capital repayment mortgage this would mean a monthly bill of £536 and an overall monthly saving of at least £100.
Barrett added: “Our latest research highlights the gap between the amount first-time buyers are able to save up and what is needed to access the most competitive rates in the market.
“While saving towards that initial deposit is no easy feat in the current economic climate, the figures show that if first-time buyers’ aim towards a larger deposit they could save significantly on their yearly repayments.
“Long gone are the days of 100% LTV mortgages and £10,000 deposits. Stricter lending criteria have also meant that many first-time buyers aren’t even making it past the application stage.”
