Lower deposits required for FTB mortgages

Research by Mortgageforce suggests that the average deposit needed for first-time buyers (FTBs) to secure a mortgage fell to 21.25% (of the property`s value) in August, from 25.4% in July, moneynews.co.uk reports.

Katie Tucker, a spokesperson for the organisation, said that the mortgage market is likely to offer `easier terms for first-time buyers in the future due to the stability of property prices.`

She added that this should lead to mortgage lenders offering more generous deals.

A mortgage expert for Think Money commented: "It is important that anyone looking to take out a mortgage to buy a property thinks about whether they will be able to afford their repayments when the Bank of England`s base rate increases.

"Similarly, it`s important that they take a good look at the stability of their own finances - and be as certain as they can be that they`ll be able to afford a long-term commitment like a mortgage.

"Anyone looking to take on a mortgage should speak with a professional mortgage adviser before doing so."