Average First Time Buyers Deposit Is 13%

People taking their first step on the property ladder put down an average of 13% of the value of their new home during the month, the highest level since November 2004 and up from 11% in March, according to the Council of Mortgage Lenders.

First-time buyers were lent an average of 3.3 times their income in April, down from 3.35 times the previous month and the lowest level since November 2006, while the size of the average mortgage also fell slightly to £113,490, compared with £114,950 in March.

Home-movers were also hit by the tightening in lending criteria, borrowing an average of 2.96 times their income, compared with three times the previous month.The average amount they were lent fell slightly to £134,000 from £135,000.

Abbey announced this week that people with only a 5% deposit would now have to pay their mortgage arrangement fees up front, leaving people taking out its five-year fixed-rate loan needing to find £2,499.

On a brighter note, the CML figures showed a slight increase in the number of people taking out mortgages to buy a home during April.