The value of the average new mortgage has dropped backed to its lowest level for nearly two years, as the housing market continues to stagnate. The drop reflects falling house prices and buyers having to save up for a larger deposit.
The British Bankers Association reports that the average mortgage was £135,200 in January, down from £143,300 the month before and sharply lower than the high of over £150,000 reached over the summer.
Lenders have already said that the average house deposit for first time buyers has risen to 23% in recent months. Lenders are demanding higher downpayments and buyers are saving for longer in order to qualify for better deals.