Homebuyers are now paying an average deposit of £61,607 towards their property, with people saving on average £500 per month towards a new home.
The research, which was carried out by Tesco Bank as part of their new Home Buyers Report, surveyed recent UK homebuyers and found that despite deposit prices increasing, two in five (40 per cent) of those who recently bought a home feel more positive about their finances over the coming year.
Exploring the financial state of recent homebuyers, the study shows that despite seven in ten (70 per cent) being prepared for additional moving fees such as stamp duty, legal fees and removal costs, two in five (40 per cent) had no savings left after purchasing a home.
Ending up with zero savings following the transaction could prove to be an issue though, as the report reveals millions of people end up overpaying £274 per month on their monthly payments after sliding on to Standard Variable Rates (SVR). Tesco Bank automatically offers existing customers access to the Bank’s competitive rates 12 weeks before the end of the fixed rate term.
Furthermore, the study found that, even though recent homebuyers feel more financially positive after buying a home, over half (55 per cent) are having to make cutbacks to afford their monthly mortgage repayments. A quarter (25 per cent) have reduced the number of holidays taken, one in ten (10 per cent) are working additional hours or have taken on an additional job, while a third (30 per cent) have sacrificed their social spending budgets.
The survey also compares regions – looking at the average amount homebuyers from across the country had to save per month to achieve their deposit costs. Perhaps unsurprisingly, Londoners had to save the most and bank on average £844 per month, while people from the Midlands boast the lowest figure, saving less than half of that (£419 per month).
Despite having to save the least each month to reach their down payment fee, Wales trumps the Midlands as the region with the lowest deposit costs, with the average falling at £41,406. The North quickly follows at £41,808, with the Midlands taking the third spot at £44,010.
David McCreadie, managing director at Tesco Bank, said: ““Our goal is to reward the loyalty of our customers. Our latest home buyers research illustrates that customers continue to face many challenges when buying a home and so we give them a little help by offering our competitive rates when their fixed rate term comes to an end.
“Alongside our competitive mortgage rates, we are also launching a series of guides to help customers navigate some of the potential bumps in the road as they move into their new home – especially those who are moving home for the first time.
“Uniquely, customers can also collect Tesco Clubcard points on their mortgage repayments, giving them access to a great range of Clubcard Reward Partners for savings on family fun, travel and eating out, which is especially useful having just moved home.”