The Brexit vote has not been the boon for first-time buyers many forecasters expected it might be, new analysis of prices and mortgage data has revealed.
In the aftermath of the referendum, many expected house prices across the country to dip, making it easier for hard-pressed savers to get a foot on the ladder. However, not only have prices held up, banks are asking first-timers to stump up even larger deposits in order to get a mortgage, AmTrust and Moneyfacts have found.
The number of different mortgages on the market offering a 95 per cent loan-to-value ratio - meaning housebuyers need to find only five per cent of the value of their property as a deposit - dropped from 249 before the referendum to 238 after the vote. Meanwhile, the number of different products available for those needing to borrow only 80 per cent went up, in a sign banks could be getting more cautious about who they are lending to in the wake of the 23 June vote.
However, those that are able to secure a mortgage are benefiting from lower monthly repayments thanks to the Bank of England's decision to cut interest rates to an all-time low of 0.25 per cent. For those who borrowed 95 per cent of the value of a first-time home - £161,000 - average monthly mortgage repayments have dropped by 4.8 per cent. For those on a 90 per cent loan-to-value mortgage, they are saving £52 a month - or 7.3 per cent - on their monthly repayments.
Simon Crone, commercial director of AmTrust, said: "The early indications are that Brexit has not prevented the upward march of house prices for first time buyers. [It is] perhaps not surprising, to see the number of available products for those with small deposits going into decline at a time when lender appetite for risk looks set to decrease.
"This suggests that Brexit may not be as good for first time buyers as initially thought."