Deposit needed for a UK mortgage has risen to £40,000 on 100 Mortgages

If you are looking to purchase a property in the UK you will need on average £40,000 deposit to be eligible for a best-buy mortgage deal. An average house in England and Wales is currently valued at £180,781 to purchase this property you would need an average of £37,119 according to mortgage company mform.co.uk to secure the competitive mortgage rate.

Last year if you were looking to purchase a home in England or Wales you would have needed an average of £20,980 for your deposit, so that is a massive 43 percent rise this year.

This is due to the lenders scaling back the loan-to-value ratios and becoming increasingly risk averse, although the house prices are falling it does not help the homebuyer as all other costs have risen.

If you want to look at the figures as a percentage of the property purchase price, you are looking at an average of 20.75 percent of the property’s value to secure the best buy mortgage rate, this is nearly double want you needed last year which averaged at 11.75 percent according to mform.co.uk.

If you looking to purchase a property in London, then you would be in for quite a shock, with the average home priced at £345,000 you would need a deposit of £71,616 according to mform.co.uk

Source: birminghampost

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