The average deposit from first time buyers has risen by two thirds since October last year, according to statistics from Leadbay.
However, first time buyers are still struggling to get onto the property ladder, with the average age of those passing through the Leadbay system rising from 29 to 31 over the same period.
Deposit amounts requested by first time buyers rose 66% from £16,824 to £28,012, according to Leadbay’s figures.
However, the rising age of first time buyers indicates many have to save for longer to afford their first home and the number of first time buyers has fallen by 24%.
Toby Hughes, innovation development manager at Leadbay, says: “Borrowers with bigger deposits are obviously now coming to the market taking advantage of the current buyers’ market.”
However, Leadbay says brokers should remain positive as there are still many first time buyers in the market. It says they should be easier to place as their average LTV has fallen to 83% from 88% and they also offer other sales opportunities
“First time buyers offer great return on marketing investment for the mortgage adviser due to the fact that they have a wide range of opportunities for cross selling other products such as life assurance and have great potential lifetime value,” explains Hughes.
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