Mortgage lending in April declined according to latest statistics, down 14 percent from March, with the back to back bank holidays making it hard to identify why.
Gross lending fell to an estimated £9.8 billion in April from £11.4 billion in March, and this figure was five percent down from figures in April last year of £10.3 billion, the Council of Mortgage Lenders (CML) reveal.
ìLevels of activity look set to remain broadly flat over the near-term,î commented Bob Pannell, CML chief economist.
ìIt now seems unlikely that interest rates will rise much, if at all, this year and this should help keep the market on an even keel.î
First Time Buyers
Analysis by Santander Mortgages reveals the average deposit put down by a first time buyer is 17 percent, which is two percent more than the current average. However to accumulate this amount, first time buyers save for around 29 months.
A third of all first time buyers put down a deposit which is between six-20 percent, while 12 percent put down between 11 and 20 percent. A surprising one in 10 paid almost half of the full property price, according to the study, and 15 percent bought the property outright.
The majority have managed to put down a hefty deposit through the route of using hard earned savings, as one in four first time buyers did. A further eight percent relied on inheritance or money given by parents (six percent) to get them on the property ladder, while five percent sought additional work, and four percent took out a loan.
If you are looking to take out a mortgage then it is worth using your savings to put down a substantial deposit, as this means you are likely to be offered a better rate of interest on your repayments. This in turn, will make the monthly cost of owning a house more affordable.