Average borrower would need to find an extra £81,510 to get onto the housing ladder
First-time buyers must now quadruple their deposits to get onto the housing ladder as mortgage rates stick at 6.5pc, new research shows.
Purchasers must now pay for 43pc of their first home in cash if they want to keep their repayments the same as when average mortgage rates were 2pc, according to Hamptons estate agents. This means the average first-time buyer would need to find an extra £81,510 in cash.
When mortgage rates were at 2pc, a first-time buyer purchasing a typical £247,000 home with a 10pc deposit paid £941 per month on a 25-year mortgage.
If the buyer purchased the same house today, with a mortgage rate of 6.5pc, they would need to have a 43pc deposit in order to keep their monthly payments at £941.