20% deposit for 1st time buyers dampens housing recovery
Published on Friday, 18th of February 2011 by Craig Cummins. This article has previously been viewed 139 times and was last read on Thursday, 17th of May 2012 at 10:56:58.
Due to the credit crunch, lenders (banks, building societies, etc...) are now requiring people to put down large deposits to secure mortgages. Typically, these are in the region of 20%-25% of the total sum required. To put that into perspective, for an average priced house of £160,000 this would equate to the purchaser requiring a deposit in the region of £40,000. As such, people are deferring the decision to purchase a home until either (a) they've saved up a sufficient deposit; or (b) the current stringent lending requirements are relaxed as & when we move out of the current recession.
