SINGLE first-time buyers should look to purchase property in the north of England where affordable house prices mean they could pay the monthly mortgage repayments alone – and have cash to spare.
Sunderland has been named the most affordable city for first-time buyers, where a small flat would set you back £53,316 and the monthly mortgage repayments would only cost nine per cent of your wages.
To put that into perspective, on average, first-time buyers in England and Wales end up spending 33 per cent of their pay cheque every month on their mortgage.
So, while you may bring home £2,187 a month working in Sunderland, only £201 is needed to go towards paying off your mortgage.
The new research, put together by property management site Zoopla, compared the cost of owning a one-bed flat with average wages in different areas of the UK.
It also worked out the monthly mortgage payments compared to average salaries, based on putting down a 15 per cent deposit and paying off the loan at a rate of two per cent over 25 years.
North Tyneside and Wakefield were the second and third most affordable cities, where only 10.67 per cent and 11.53 per cent of your monthly wages would need to go towards your mortgage respectively.
In London, first-time buyers should look to move to Bexley where you’ll need to spend just over 27 per cent of your pay cheque on your mortgage.
Here, on the borders of the capital, a one-bed flat will cost you £205,730, which means that while you’re bringing home £2,794 a month, £776 will need to go straight on the loan.
Homeowners in Havering, north of the river Thames, will need to spend 29.1 per cent of their salary on a mortgage, while those in Bromley will find that 29.8 per cent of their wage goes straight on the bill.
Unsurprisingly, the most unaffordable place to buy for single first-time buyers is Kensington and Chelsea in London, where almost 78 per cent of their monthly pay cheque going straight on the mortgage.
The most expensive place for first-time buyers purchasing property on their own outside of the capital is in Hertsmere, near Watford, where 35 per cent on their wages are needed to pay off the mortgage every month.
Property expert Annabel Dixon from Zoopla said: “Getting on the property ladder can be challenging, and those buying on their own will no doubt feel this even more acutely.
“Our findings provide single buyers with guidance on where to fall in love with homes that won’t break the bank.”
MORE FOR FIRST-TIME BUYERS
Depressing statistics revealed last year show that single first-time buyers need to save for over a DECADE before they’ll have enough for a house deposit.
Sometimes, it can be the location that is standing between you and owning your own home – which is why we’ve put together a guide of what a first-time buyer budget could buy you around the UK.
We spoke to London lad, Ethan Bragginton who had to managed to buy a house with his girlfriend Aimee by the time he was 18, but he had to move away from the city to be able to afford it.
What help is out there for first-time buyers?
GETTING on the property ladder can feel like a daunting task but there are schemes out there to help first-time buyers have their own home.
Help to Buy Isa – It’s a tax-free savings account where for every £200 you save, the Government will add an extra £50. But there’s a maximum limit of £3,000 which is paid to your solicitor when you move.
Help to Buy equity loan – The Government will lend you up to 20 per cent of the home’s value – or 40 per cent in London – after you’ve put down a five per cent deposit. The loan is on top of a normal mortgage but it can only be used to buy a new build property.
Lifetime Isa – This is another Government scheme that gives anyone aged 18 to 39 the chance to save tax-free and get a bonus of up to £32,000 towards their first home. You can save up to £4,000 a year and the Government will add 25 per cent on top.
Shared ownership – Co-owning with a housing association means you can buy a part of the property and pay rent on the remaining amount. You can buy anything from 25 to 75 per cent of the property but you’re restricted to specific ones.
“First dibs” in London – London Mayor Sadiq Khan is working on a scheme that will restrict sales of all new-build homes in the capital up to £350,000 to UK buyers for three months before any overseas marketing can take place.
Starter Home Initiative – A Government scheme that will see 200,000 new-build homes in England sold to first-time buyers with a 20 per cent discount by 2020. To receive updates on the progress of these homes you can register your interest on the Starter Homes website.
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