Whilst saving for the initial deposit is still a big stumbling block for many, recent research shows that – a cross the whole of the UK – meeting the cost of a mortgage on your own home is cheaper than renting in the same region.
On average, First-Time Buyers could save a sizeable £2,268 a year once they step onto the property ladder, compared to renting, according to research from Santander UK.
This applies to all region of the UK, albeit there are marked differences. Londonders, for example, could enjoy the biggest annual savings between mortgage and rental costs at £3,468.
At the other end of the scale the smallest differential is the East of England, where the saving sits at £516 annually.
(Source: Santander UK, June 2018)
Whilst this shows that the first-time buyer might be under less financial pressure than when they were renting, there is still issue of saving up for a deposit. According to Nationwide, it may take around 8-10 years to personally save for a 20% deposit.
(Source: Nationwide, December 2017 report)
Fortunately, there are a number of government schemes and lender products that enable the first-time buyer to get access to a mortgage with just a 5% deposit. Although, applying the Nationwide calculations that may still take a couple of years to save up for.
Please talk to us to see if we can help you (or a family member) take that first step onto the property-owning ladder.
Your property may be repossessed if you do not keep up your repayments on your mortgage.