First-time buyers face deposit gap of £15,500
Posted by Lucy Wooldridge
First-time buyers looking to secure a 75 per cent loan to value mortgage could now face a deposit gap of £15,000, according to the latest figures released by Unbiased.co.uk.
And as people find it increasingly hard to save, Britons may have further difficulty trying to compile even bigger deposits in order to secure the best mortgage rates.
"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," said Karen Barrett, chief executive of the company.
Indeed, as house prices remain particularly high in comparison to earnings, these new statistics could prompt many to look to the private rented sector if they are not able to save extensively enough to finance the deposit needed to secure a reasonable mortgage.
This could be promising news for investors hoping to see demand for their properties increase following the end of the stamp duty deadline, meaning their holdings could become even more valuable.
Protecting such assets is vital to ensure their long-term profitability, with policies such as landlord property insurance able to provide the necessary cover for investors that rely on their portfolio as a regular source of income.
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