According to Angela Lord, solicitor at Lancashire law firm Napthens, too many first-time buyers are prevented from securing a mortgage simply because they have little or no savings.

Mortgage lenders are tightening their belts thanks to the credit crunch, and many young buyers are struggling to get on the property market as the 100 per cent mortgages, and higher, which were available as recently as last year are now not obtainable.

Angela points out that many first-time buyers simply do not have any savings, a major stumbling block when applying for a mortgage. Now she is advising buyers that with difficult times ahead, they need to be prepared.

She said: “It sounds very obvious, but to buy a house a substantial deposit is needed to secure a mortgage. At this point, thanks to the credit crunch, larger deposits are needed than, for example, last year.

“I am seeing many first-time buyers in particular struggling, for the simple reason that they do not have enough savings put aside to cover a deposit on a house. This is typical of buyers at the moment, thanks to the difficulty of saving due to the rising cost of living.

“However, the more it is possible to put down as deposit in the first instance, the more favourable a position buyers will be in, in the future. If a buyer can put down 20 per cent, instead of the usual required 10 per cent, it will obviously reduce the cost of their mortgage payments.

“Buyers who can save a bigger deposit will also often benefit from better rates of interest from many lenders. It is difficult to put savings aside at this time, but it is vital to securing a home, and I would urge young people in particular to look at this option before they attempt to buy a property.

“It is important not to just sit and wait for prices to drop. Saving for a deposit will bring many benefits in the future.”