press release

Press Release - 21/07/04

FIRST TIME BUYERS STUMP UP HUGE DEPOSITS TO SECURE FOOT ON PROPERTY LADDER

FIRST time buyers are putting down substantial deposits on properties to help ensure they will not be caught out by rising interest rates.

According to exclusive new research* by online financial information service Moneynet.co.uk, the typical first timer is arranging a 23 per cent deposit on a home with an average £162,000 price tag.

While new and existing mortgage borrowers escaped a rate rise earlier this month, many commentators believe a 0.25 per cent rise when the MPC meets in August is on the cards, so a high deposit strategy for those who can raise the capital will ultimately pay off.

The Moneynet research also helps dispel the myth that young buyers are struggling on lowly salaries - the average first timer earns £32,770 - significantly higher than the national average of £26,000**.

For joint buyers the picture is even rosier, with the second income coming in at £20,600 - giving an average joint income of just over £53,000 a year.

Despite this relatively high joint salary, many are still priced out of more expensive areas such as London and affluent areas of the south east.

But the evidence is that the first time buyer is now older and taking the time to amass a significant deposit before arranging their first mortgage, says Moneynet chief executive Richard Brown.

"Certainly we are seeing prospective buyers waiting longer to get onto the ladder - but even when equipped with a joint income of more than £50,000 a year, to stump up a 25 per cent deposit on a property valued at around £162,000 requires a big lump sum.

"Not that many people have £40,000 or thereabouts to put down - it looks very much like parents are stepping into the breach to help out with the deposit," adds Brown.

"It's also worth bearing in mind that our research tracks buyers who are au fait with using online mortgage research tools in order to narrow down the best mortgage deals - they tend to be more sophisticated than 'ordinary' high street mortgage shoppers."

*

FTB MORTGAGE RESEARCH DATA - JUNE 2004
Month	Average Property Value	Average Mortgage	LTV	Average Main Salary	Average Second Salary
Jun-04	£162,050	£124,263	77%	£32,778	£20,698
Research based on mortgage product search criteria provided by 1,700 randomly selected visitors to the moneynet site for the period 01.06.04 - 30.06.04.

** Office of National Statistics June 2004

PRESS ENQUIRIES

Richard Brown, Chief Executive, 0208 313 9030

David Andrews/Cathy Tully, David Andrews Media Ltd 07941 255855 / 01273 774109 / 07747196854

Consumer enquiries: info@moneynet.co.uk / www.moneynet.co.uk

Moneynet.co.uk is the UK's longest established online personal finance research and data analyst company. The company offers consumers a choice of thousands of low cost financial services products. From mortgages, personal loans to motor, home and medical insurance, credit cards, savings accounts and best buy fixed rate products, Moneynet is one of the most comprehensive online services of its kind in the UK. Founded by chief executive Richard Brown, the Moneynet brand is destined to become one of the UK's major players in consumer finance products.

A DAVID ANDREWS MEDIA LTD - RELEASE FEBRUARY 2005