Hopeful home buyers should resist the temptation to fritter away their savings if they are hoping to get the best deal on their mortgage.

According to the CML, buyers are borrowing less as a proportion of the purchase price.  First time buyers typically paid a 12 per cent deposit on their purchase in January compared to 10 per cent last December.  And the same is true for movers.  The typical home mover paid 30 per cent of the purchase price for their new home compared to 27 per cent a month earlier.

Fortunately, first time buyers in Scotland need to save less than almost anywhere else to get a foot on the property ladder. The average first time buyer estimates that they need to save up just under £23,000 before they could buy a home.  But in Scotland, first time buyers say that they need to save just £13,000 before they are in a position to buy, almost half the national average.

Despite this, the Abbey has warned that many first time buyers are spending the deposit they need to get on the property ladder.  Almost half (42 per cent) of those saving to buy a home have spent a combined £1.9 billion of their savings on other things, particularly new gadgets and cars.

Although many said that the rising cost of living was the reason for dipping in to their savings, over half confessed that they had spent some of the money intended to buy a home on a holiday.  Nici Audhlam-Gardiner, Director of Abbey Mortgages, commented: "Saving £23,000 or more for a deposit is no mean feat, particularly if you let distractions get in your way. But if you're single minded and set yourself a realistic savings target then you could find yourself making an offer on a house sooner than you think".