Saving for a deposit
Over half (52%) of first time buyers see raising a deposit as the biggest barrier to home ownership today (source: our survey (15.50 MB), 'Life after lockdown: the future of UK homeownership'). With the average deposit at £44,000, according to the Office of National Statistics, this is no surprise. (Source: ONS House Price data March 2019).
Our first time buyer survey (13.81 MB) suggests that first time buyers are aiming for an average deposit of £24,816. This might be more achievable, but in many locations, it'll put them on a higher loan-to-value (LTV) mortgage ratio. For example, if the house you want is worth £250,000 and you have a £25,000 deposit, the LTV ratio will be 90% as you'll need to borrow 90% of the property's value. With a larger deposit, you'll have a smaller LTV ratio and potentially better interest rates.