First buyers are encouraged to save ‘That Little Bit Extra’ for a down payment, since analysis showed that there was heavy competition for the houses in their price range.
Not only his first buyers who try to purchase barriers that are created by high mortgage interest and affordability problems, but it seems that the houses are scarce in their price range.
According to research by mortgage adviser Alexander Hall, this is based on his analysis based on the average first buyer Home In Great Britain is currently £ 244.519.
This means that the average first buyer would require a loan of £ 207,841 if they are able to collect a healthy deposit of 15% of £ 36,678.
With the average rate for a first buyer Mortgage now 4.57%, an increase of 4.38% a year ago, the monthly costs for repaying a mortgage now amount to £ 1,164 per month, according to the analysis of Alexander Hall .
This is an annual leap equivalent from 7.3% to £ 79 per month.
But this is just one thing to consider for a first buyer. Further investigation by the mortgage adviser revealed that it is not only the costs of a down payment and the mortgage repayments that could be problematic.
There is now ‘sturdy competition’ that protects a home in the first place.
Although there are approximately 436,839 properties that are currently for sale in Great Britain, only about a third (34%) are mentioned with an asking price against or lower, the average price paid by a first buyer.
Some areas have more options than others. Alexander Hall discovered that London was by far the highest average price paid by first buyers for £ 444,548, there are many more shares available for first buyers in the West Midlands, where 27% of the houses currently for sale have for sale An asking price for or below the average price paid by a first buyer (£ 214,955).
Stephanie Daley, director of partnerships at mortgage adviser, Alexander Hall, said: “Getting that first foot on the real estate ladder is not an easy performance and the first buyers of today are confronted with a considerably more difficult task than their predecessors, with the average price paid A first buyer has increased by 52% over the past decade alone.
“This not only means that they need a larger down payment to protect a mortgage, but their monthly mortgage releases are higher, whereby these costs are further increased as a result of higher mortgage interest versus a year ago.”
How can the first buyers improve their chances of the Thuisbuying?
Moving to an area with a larger choice of houses at a lower price is an option for first buyers-but this is not always the most practical or suitable route.
Daley’s advice is to try to stimulate your deposit by saving that little bit extra. What is more, waiting a little longer while increasing your deposit can also have another benefit.
She said: “The good news is that we are the Bank of England lower interest rates Already this year and, with more cuts that are expected to come, first buyers must benefit from relieving mortgage interest.
“Our advice is, where possible, that little extra saving when forming a mortgage deposit, because this will increase your purchase potential of real estate.
“It is also worthwhile to seek the help of a top mortgage adviser, because they ensure that you get the very best mortgage agreement for you, which can also help you strengthen your position in the market and the potential number of houses can be done for you enlarge. “