Housing deposits jump 10-fold in 20 years
That's a near 10-fold increase in just over 20 years. What's more, household incomes have only doubled during the same period, making life that much harder for today's buyers.
Why have deposit requirements increased by so much?
The deposit you need to find depends on the price you agree to pay for a property and the terms of your mortgage deal, so both house prices and lending conditions have an impact.
House prices in the UK have risen by a factor of 4.32 since 1990. However, the increase in house prices does not in itself explain why today's buyers are having to find close to 10 times the amount needed by buyers in 1990.
Banks and building societies also now require much larger deposits from borrowers - and reserve their best deals for those able to put down a large percentage of a property's value.
First Direct's figures reveal that the average deposit paid by today's buyers is 27%, up from 12% in 1990 and 10% in the mid-1990s.
What difference does the size of your deposit make to your mortgage?
The best two-year tracker deal on the market at the moment for remortgage clients, from Santander, has an initial rate of just 1.95%. However, the mortgage, which has an arrangement fee of £1,995, is only available to borrowers able to raise a deposit of at least 40%.
For remortgage borrowers who can only find 25% of a property's value, meanwhile, the best deal is from Leeds Building Society with an initial rate of 2.45% and a £999 fee.
What are the best deals for buyers with smaller deposits?
Fortunately for cash-strapped buyers, there are still some competitive mortgages available for people needing to borrow up to 85% of a property's value.
The best two-year discount deal for borrowers in this situation is from HSBC at 2.79% with a £1,499 fee, while Yorkshire Building Society has a two-year fix at 3.24% with a £995 fee.