Commenting on data, which revealed that average house purchase deposits fell by 2 per cent between February and March 2014 to £61,325 from £62,551.5, the head of lending at national advisory firm Mortgage Advice Bureau, said: “Providing customers can satisfy new mortgage affordability checks, this trend should continue.”
Data compiled by MAB from 550 mortgage brokers revealed that the average deposit fell to its lowest level for 12 months in March, despite the average mortgage value rising by 1 per cent to £155,833, and the average purchase price rising by 7 per cent to £217,158.
Angela Lowry, founder of Birmingham-based mortgage broker Alvechurch Investments, said: “I would agree that high LTV mortgages are keeping deposit requirements in check, but this could all change with the MMR. We are already seeing an adverse effect with applications, and service levels have understandably dropped.”
£61,325 – average deposit in March (-2% on February average)
£155,833 – average mortgage in March (+1% on February average)