16 Sep, 2019/ by Homeward Legal /First Time Buyer
First-time buyer deposits have risen by an extraordinary 52 percent in the last decade.
That means newcomers to home ownership will have to find the biggest deposit since 2009.
However, despite the rising cost of becoming a homeowner, the number of newbies purchasing their first home has more than doubled in the same time period.
Average deposit doubles in decade
New data from Halifax revealed there have been more than 170,000 first-time buyers in 2019, more than double the 72,180 first-time buyers in 2009.
According to the lender, the average deposit for a first-time buyer is now £41,099, up 52 percent from 2009's £27,059.
Meanwhile, in London, the average first-time buyer must produce a deposit of £101,389, almost double 2009's deposit of £50,944.
Boost to savings
To help more first-time buyers realise their dream of home ownership, the Halifax has launched its Family Boost mortgage, which aims to help first-time buyers who don't have a deposit.
The Family Boost mortgage comes with a three-year fixed repayment rate of 2.90 percent and will allow savings from parents or other family to provide security for 10 percent of the overall loan required to buy a property.
Borrowers will pay no fee to access this mortgage, while the family or friends using their savings as a deposit will receive a fixed interest rate of 2.5 percent for the same period.
At the end of three years, the savings and interest will be returned to the family member so long as the mortgagee has kept up to date with repayments.
Helping next generation
Russell Galley, managing director of Halifax, said: "While increasing numbers of first-time buyers is good news for the housing market - and they are not far off the peak of the last boom, which was just under 190,000 in 2006 - it's saving enough to get a foot in the door that's still the biggest blocker.
"As part of our commitment to lending £30 billion to first-time buyers by 2020, we are offering families a way to help give the next generation the boost they need to get on to the property ladder, while providing competitive rates to both buyer and supporter."
According to the Halifax, the average age of a first-time buyer is 31, up from 30 a decade ago.