Now is the time for First Time buyers

Research carried out by Santander Mortgages appeared to show buying is cheaper than renting in every area in the UK except London.

According to the bank’s research, would-be buyers currently renting outside of London could save themselves an average of £1,040 a year if they were able to own their own property.

The average monthly rent in the UK, excluding London, is currently just over £420 compared to monthly repayments of £334 for the average first-time buyer – an average saving for homeowners of £86 a month.

Only those in the capital will be better off if they continue renting. Despite rental prices in London being roughly 56 per cent higher than the average across the UK, at £701 a month, exceptionally high house prices mean it would, on average, cost potential first-time buyers an additional £359 a month to buy.

Phil Cliff, director of mortgage marketing at Santander UK said: “The now average loan to value of 75 per cent for first-time-buyers has provided an obstacle in some cases but saving for a deposit is clearly a wise move. Lenders are also looking to offer higher LTV products while the government’s announcement that it will help boost the number of new homes is all positive news for those wishing to take their first steps on the property ladder.”

For free independent mortgage advice contact Big Mortgages.

We are situated near to Derby, Leicester, and Nottingham.

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