Large deposits now needed for property purchases

A figure from the mortgage industry has recently claimed that now is the perfect time to buy a property, but only if a large deposit is available to the buyer.

Stuart Inman, MyMortgageDirect director, claimed that mortgages for customers with a small deposit are still high and represents a higher cost than a monthly rental bill.

Mr Inham said: “It is easy to say a mortgage is cheaper than renting, but obviously with a mortgage nowadays, you’ve got a huge deposit which people need to find.”

Figures from the Council of Mortgage Lenders (CML) showed the proportion of loans for house purchases going to first-time buyers in May was at its lowest point since September 2007.

Source: Houseladder