First-time buyers handing over tens of thousands as deposits hit 10-year high

First-time buyers in the UK are now putting down the largest deposits they have in a decade, new figures show.

The average deposit has reached £41,099 – just under a fifth of the average house price (18%) – up from £27,059 in 2009.

That's according to Halifax figures, which also show there have been more than 170,000 first-time buyers so far this year – more than twice as many as in 2009 - despite the rise in deposits since then.

In London, the average first-time buyer deposit now stands at £101,389 (22% of the purchase price) - almost double the 2009 figure of £50,944.

"While increasing numbers of first-time buyers is good news for the housing market and they are not far off the peak of the last boom which was just under 190,000 in 2006 – it’s saving enough to get a foot in the door that’s still the biggest blocker," Russell Galley, at Halifax, said.

Do you want to share your first time buyer story? Get in touch: emma.munbodh@mirror.co.uk

In London, the average first time buyer is 33 (Getty!)

Statistically, the average first-time buyer is now 31, with that age having slowly crept up over the past decade from 30.

The oldest are in London (33), while the youngest first-time buyers can be found in Amber Valley in the East Midlands, where the average age is 27.

And these buyers now make up more than half of the UK’s mortgage financed house purchases, compared to 38% in 2009.

This share has grown since 2013 when the Help to Buy Scheme was introduced, which, to date, has helped 179,816 first-time buyers get on the ladder. Buyers also received a boost in 2018 when new stamp duty changes were introduced .

When it comes to affordable homes, the number of areas in this bracket has fallen from 83 to 38. The most affordable is East Ayrshire in Scotland, with Brent in London the least affordable. See our guide on where to find affordable homes, here .

Regionally, first-time buyers in Yorkshire and the Humber, Wales and East Midlands have to find the lowest deposit – 16% of the total purchase price - compared to London at 22%.

Are you struggling to save for a deposit? See our guide on all of your options, including Help to Buy, here .

Help, I want to buy my first home

There are support schemes and mortgages to help turn that struggle into a reality (Getty)

Halifax has today launched a new family boost mortgage to help first-time buyers get on the ladder without a deposit.

Instead of a lump sum, savings from parents or other family members can be used to provide security for 10% of the loan.

"As part of our commitment to lending £30bn to first-time buyers by 2020, we are offering families a way to help give the next generation the boost that they need to get on to the property ladder, while providing competitive rates to both buyer and supporter," the lender said.

The three-year mortgage is fixed at 2.9% with no fee, while the deposit savings are held at a fixed rate of 2.5% for the same period.

At the end of the three years, provided that the mortgage payments have been kept up to date, the savings and interest will be returned to the supporter (ie family member).

The scheme follows on from Lloyds Bank's 100% mortgage that also requires no deposit from the buyer .

There's even a mortgage to help you find a buying partner if you don't already have one (Westend61)

Instead, you'll need a family member who's willing to part with their cash for three years as a 'security' measure.

To apply for the Lend a Hand mortgage, a family member will need to contribute up to 10% of the loan as security that will count as the acting 'deposit'.

The three-year deal, available to borrowers in England and Wales, is fixed at 2.99%. Family members who invest their money will get 2.5% interest over the full period.

One of the easiest ways to get on the ladder though, is through buying with a second person, such as a family member or partner.

But if you're on your own, . Essentially it pairs you with a ‘funding partner’ in order to purchase a property.

You stick down 5% as the deposit, while the partner pays the rest.

You then pay rent on the chunk of the property that you don’t own, with the option to overpay on the rent whenever you like.

You can increase your stake in the property by up to 5% a year, up to a maximum of a 40% ownership.

Once you’ve reached that point the idea is that you'll be in a position to get a traditional mortgage and purchase the property outright from your funding partner.

Don't forget, to help you build that 5% in the first place, you can open a Lifetime ISA or Help to Buy ISA to speed things up.

You can read all about the different ways your parents can help you buy - without parting with their cash, here .