Sit it out, first-time buyers told

First-time buyers who may be struggling to get a mortgage have been advised to wait, saving up as much money as they can in the meantime.

Paul Holmes, operations director of advisory service Firstrung, said that since house prices are likely to fall still further, potential buyers are able to wait longer without missing out.

"While you are priced out and there is no mortgage product available for you, save up your deposit and be very careful that you don't waste [it] on peripherals. Just simply put it away and be confident that as prices are falling there will be a time when you can put that deposit to incredibly good use," he urged.

Mr Holmes added that a large deposit could save buyers a significant amount in the long-term, since it will cut repayments over the average 25-year lending time.

According to figures from the Council of Mortgage Lenders (CML) the average first-time buyer put down a deposit of 13 per cent in April, which is the highest level in over three years.

First-time buyers typically took out loans for 3.3 times their income, down from 3.35 in March.

Meanwhile, figures from Capital Economics reported in the Telegraph suggest that house prices could fall by 35 per cent over the next three years.