Homeowners Need Deposit of over 20%

First time buyers are becoming more stretched as the credit crunch limits the amount of best buy mortgage deals available. According to  research published by This is Money, the average homeowner needs a deposit of £40,000 before they can get a mortgage deal at a good rate.

The figure is up 43% from the previous year where the average deposit to secure a lending rate was £20,980. This is because, although house prices are falling, lenders have scaled back their loan-to-value ratios. This means that those who are looking to purchase a home need to raise 20.75% of the asking price.