The vast majority of mortgage deposits exceed 20% of the total house cost
Recent research into the home buying and selling market reveals that the vast majority of new homeowners, who sought a mortgage over the past two years, paid a mortgage deposit of over 20% of their property’s cost price.
- 63% of homeowners who bought their home in the past two years now have a mortgage for that home.
- Of that number, only 16% paid a mortgage deposit that represented less than 20% of the cost price of their home. Only 2% paid less than 10% the cost value as a deposit.
- Meanwhile, 30% of those with a mortgage for a home they bought in the past two years say that their mortgage only represents 50% or less of the initial cost price of their home.
YouGov SixthSense research also provides insight into consumers’ views of the mortgage acquiring process.
- 61% of mortgage holders consider mortgage rates to be the most important factor when taking out a mortgage
- Customer service ranks closely behind mortgage rates with 58%.
- Other important factors include fair treatment of customers (40%) and the trustworthiness of the mortgage provider (38%).
Commenting on the findings YouGov SixthSense Research Director James McCoy said, “Buying a home has long been one of life’s landmark events. However, for an ever-expanding proportion of the population, it is increasingly unattainable.
“Furthermore, first time buyers are having to save up for longer than in previous generations. Our findings suggest that the Government’s ‘NewBuy’ scheme, which allows first-time buyers the opportunity to get on the housing ladder with only a 5% deposit, will find a receptive audience.”
Total sample size was 2,958 nationally representative UK adults aged 16+
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