Research by Experian suggested that first-time buyers needed to find a deposit of around £30,989 in order to purchase a first home in 2018.
This is up sharply from the average deposit of £27,768 reported by first-time buyers in Experian’s credit barometer a year ago.
The latest study found that just one in four people searching for mortgages had an Experian credit score in the ‘excellent’ band. Around 30 per cent of searchers had scores of either ‘poor’ or ‘ very poor’, making them unlikely to be approved by any lender.
Experian’s study found that three-quarters of would-be borrowers were specifically looking for fixed rate deals in April. This is up from 72 per cent in March, but down from the 81 per cent identified in February.
Amir Goshtai, managing director of Experian Marketplace and Affinity, said that is was understandable that putting together a deposit could seem overwhelming for first-time buyers, and noted many are reliant on some form of financial support from their loved ones.
Goshtai added: “When people can buy, most are looking at the security of a fixed-rate deal, giving them the assurance of the same monthly payments over the length of the mortgage.
“However, searches for fixed-term mortgages did reduce slightly, which may have been the result of consumers anticipating a resolution to Brexit discussions and greater certainty in the economy.”