The best mortgage deals are making a home within reach if you live in the right place
Providing a first-time buyer can get the best mortgage deal available, a home is now attainable in almost half of all local authorities, according to a recent Halifax survey.
The Halifax survey took the average price of homes sold to first-time buyers in each local authority area and compared them with average local earnings. If the property cost less than four times the typical annual salary, the Halifax deemed the area affordable, if the property cost more than four times the typical annual salary, the Halifax deemed the area unaffordable.
For first-time buyers, property is now more affordable than at any other point in the past eight years. That is, provided the first-time buyer lives in the right part of Britain, and can come up with a substantial mortgage deposit to achieve the best mortgage deal available from lenders. At the market peak in 2007, homes were unaffordable for first-time-buyers in 95 per cent of areas. Martin Ellis, housing economist for Halifax, says: ‘Significant falls in prices coupled with a slight upwards drift in earnings has made a home much more affordable in many parts of Britain.’
Continuing low interest rates mean that lenders are currently offering the best mortgage deals to first-time buyers with a decent deposit, this means that the cost of paying a typical first mortgage has become more manageable. Currently a first-time buyer would need to allocate around a quarter of their take-home pay to a mortgage, at the peak of the market, first-time buyers would typically need to spend half their disposable income on the mortgage.
Deal Direct can help you get the best mortgage deal available in the UK today.
