New research from the Nottingham Building Society reveals thats the average homebuyer over the past year had a deposit of 29%.
48% of those who bought in the last 12 months or plan to do so soon had deposits of less than 20% with 27% of successful buyers completing deals despite having deposits of less than 10% of their house price.
Meanwhile, the Nottingham’s independent research which found the choice of 90% and 95% LTV deals has expanded – around 605 90% and 95% mortgages are available compared to just 325 in November 2011 and 581 in November last year.
Ian Gibbons, Nottingham Mortgage Services’ senior mortgage broking manager, said: “Homebuyers are demonstrating their commitment for a deposit as highlighted by the average 29% they are able to put down.
“Many will be using the equity they have built up in their home but it is also clear that people saving for deposits are succeeding in the market as well with nearly half of those putting down 20% or less.
“Securing a deposit is of course only the first step as buyers then need mortgages and prices can vary considerably depending on the LTV which is why searching the market is so important.”
The Nottingham’s research found mortgage brokers were the most popular way of securing a mortgage for people who have taken out loans in the past three years.
Over the past 12 months figures have shown that more and more customers are turning to brokers, with more than 50% of 25-34 year-olds using brokers to source their mortgage, a figure that drops to 40% of those aged 35-44, 28% who are 45-54 and 33% aged 55-64.
Gibbons added: “There is undoubted growing use of brokers. Seeking an independent view on the best deal available to a customer is a very sensible approach.”
The study also found that cash buyers are still a force in the market – around 12% who have bought in the past year or plan to buy in the next two years say they did not need to borrow.
