By Nicole Conner For Mailonline
Published: 09:30 BST, 19 September 2020 | Updated: 10:23 BST, 19 September 2020
First-time buyers are being asked to save at least 20 per cent for a deposit on a house as there are little deals for mortgages on the market.
In the past week, not one high street bank has offered mortgages for those with a 10 per cent deposit according to The Times.
Brokers have also warned that deals for those with a 15 per cent deposit are also disappearing as more than 300 of them have been pulled since January.
First-time buyers are being asked to save at least 20 per cent for a deposit on a house as mortgage deals for those with a 10 per cent deposit disappear
For those with smaller deposits there are only a small number of these deals available.
According to Moneyfacts, there are only 44 deals left for those with a 10 per cent deposit, but most have restrictive criteria.
David Hollingworth from the mortgage broker London & Country said that its already a 'big ask to require a first-time buyer who has scrimped and saved to come up with a bigger deposit'.
This comes after Rishi Sunak's stamp duty holiday, which can save buyers up to £15,000.
Rishi Sunak's stamp duty holiday could save buyers up to £15,000, but first-time buyers are being asked to save at least 20 per cent for a mortgage
The Chancellor said he would immediately raise the threshold on stamp duty to £500,000 until March 31 2021.
The measure, which temporarily increases the 'nil rate' band of stamp duty from £125,000 to £500,000, will reduce the average stamp duty bill for a main home from £4,500 to zero.
The Chancellor's crucial coronavirus recovery package includes a six-month 'holiday' from paying the charge on most homes to kickstart the market.
However, economists voiced alarm at the idea that the move could be announced to the House of Commons, but not implemented until the Autumn.
Fears were raised that purchases would grind to a halt as people would simply wait in order save thousands of pounds.