A first-time buyer's story

Mortgage lending rose slightly in April, figures show

First-time buyers are having to find larger deposits as the credit crunch continues to affect potential homeowners.

The average deposit for first-time buyers is 13% of a property's value - the highest for more than three years, according to the Council of Mortgage Lenders.

While this offers a cushion against falling house prices for those who can pay, others are finding it tough because they do not have sufficient savings to put down that kind of deposit.

The story of Adam Holmes, and his new wife Stacey, is typical of many. Adam told the BBC of their struggle to finance their first home.

I am a credit controller and my wife is a teacher. We are both 27.

I had banked with the Halifax for years but they wanted a �40,000 deposit. How can anyone in our position save that?

Adam Holmes

Small rebound in mortgage lending

We had just got married and wanted to buy our first home rather than renting which, at the time, seemed like throwing money down the drain.

We found it quite difficult to get a mortgage. We did think of saving for a deposit but we had just had to save �5,000 for the wedding and we were living with my parents.

My wife is South African so that made it more difficult to get a mortgage.

I had banked with the Halifax for years but they wanted a �40,000 deposit. How can anyone in our position save that?

We spoke to brokers and got a 100% mortgage with Northern Rock on the day they were bailed out by the government. That pushed up the rate on our three-year fixed-rate deal from 6.75% to 7.29% when we signed.

We bought a one-bedroom ground floor flat in Bromley for �177,000 in December. Our budget was �180,000. It was a bit of a dump but friends helped to do up the bathroom and we borrowed a bit of money to do it up.

Now our bills are huge. The electricity bill is up to �65 a month and there is a �70 a month service charge on the property.

We seem to have no disposable income. I think you should be able to have one holiday a year - not a massive one, but somewhere cheap.

It sounds silly but I have really wanted a PlayStation for six months but I cannot go out and buy one.

If I could go back we would rent somewhere for about �750 a month. Our mortgage is �1,300 a month, so we could have put money away until the credit crunch blows over.

The government gives no incentive for first-time buyers.