According to research by the Halifax, the number of first-time buyers who purchased a property last year was at the highest level since the financial crisis in 2008, with an estimated 335,750 new buyers climbing on the first rung of the property ladder.
Industry commentators have welcomed the news and view the rise as a positive sign, despite big regional variations, the need for assisted mortgage schemes, big deposits and longer-term loan arrangements.
For example, 60% of first-tie buyers took out a mortgage of 25 years or longer, with over 25% opting for a term of between 30-35 years to allow the monthly repayments to be affordable.
At the same time the average first-time deposit stands at over £32,000, with the average cost of a property hitting the £200,000 barrier – but young buyers in the South of England are still having to stretch themselves to the limit, and beyond in many cases, by asking for family assistance.
In London, the average deposit required is a shade over £100,000, with the average price of a first homes coming in at a whopping £402,692… double the national average.
In a report on rising London house prices, The Evening Standard reports today that; “The number of wards where prices averaged below the £300,000 mark plummeted from 104 to 40 last year, most of them in the outer fringes of east and south London, according to research. The analysis by estate agency Savills also shows that for the first time, there were more wards with a price average of over £1 million than there were with under £300,000. The £300,000 barrier is seen as significant because it represents the outer limit of affordability for a typical London household who have a joint income of about £50,000 and a 25 per cent deposit.”
Here at The Financial Planning Group we are specialists in helping families and home owners of all ages find the perfect mortgage deal – we can even secure a mortgage deal six months ahead of your current deal ending – which makes it possible for our clients to reserve the best rates regardless of what the market does in that period.
If you would like to speak about your mortgage or re-mortgage, and secure one of the record low deals that are currently available, please feel call Steve Padgman on 020 8614 4782 or email Steve.Padgham@fpgonline.co.uk