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Average deposits jump 3.5% across Great Britain

  • 03/12/2015
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Average deposits jump 3.5% across Great Britain
Average deposits increased in nine out of 11 regions in Great Britain in October, rising to £71,301, findings by Mortgage Advice Bureau show.

According to the research, deposits rose by an average of 0.9% compared to September and 3.5% compared to a year earlier.

The biggest upswing in deposit size was found in East Anglia, where typical deposits were up 11.6% month-on-month from £46,504 to £51,877.

Meanwhile, the typical loan size in the region dropped from £132,325 in September to £125,039, which the research said indicated borrowers were fronting more of their own funds as house prices rise.

London is home to the largest deposits, which have seen an increase of 5.2% since September to total £179,248.

First-time buyers in the capital are likely to be given a boost by the dedicated London Help to Buy scheme, which offers buyers with a 5% deposit a loan of up to 40% of the value of a new build property, interest free for five years.

Based on London’s average house price of £533,922 in October, this means borrowers in the capital would pay a deposit of £26,696.

The Help to Buy equity loan, offering a 20% equity loan in the rest of the country, has been extended until 2021.

Total purchase mortgage applications made through brokers rose 28.7% year-on-year in October, resulting in the largest number of applications since the Mortgage Advice Bureau Index started tracking this in early 2009.

Brian Murphy, head of lending at Mortgage Advice Bureau, said the extension of the Help to Buy scheme for another year will give first-time buyers a longer window to buy with a 5% deposit and can be used in conjunction with the Help to Buy ISA, for an additional boost to deposits.

The government supported Help to Buy ISA was launched by a number of lenders on 1 December.

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