FTBs told their time has come - Mortgages - News - Moneyfacts


FTBs told their time has come

FTBs told their time has come

Category: Mortgages

Updated: 09/10/2009
First Published: 09/10/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Potential first time buyers have been told that now could be the time to re-enter the property market.

Research from Abbey Mortgages revealed that, apart from in London, it is cheaper to buy a property rather than rent.

According to the survey, 1.61 million Britons are considering buying property outside the capital and could potentially save themselves £624 over the next 12 months by doing so - a collective saving of £1 billion.

For these people, while the average monthly rent currently amounts to £434, buying a property with a 25 per cent deposit sees a monthly mortgage bill of £382 - an average saving of £52 per month.

Meanwhile, across the country, the average price of typical first time buyer flats and terraced properties have decreased by nine per cent to £92,861 in the last 12 months.

This means a first time buyer will need an average deposit of £23,215 if they want to buy a property with a 25 per cent deposit.

"Our latest research shows there is hope for first time buyers trying to buy their first home," said Nici Audhlam-Gardiner, director of Abbey Mortgages. "It's now cheaper in all regions bar one to buy rather than rent and shows that saving for that all important deposit is so worthwhile."

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Do you think your home will rise in value?

There’s been a lot of talk recently about the rate of house price growth slowing, but is it affecting your personal expectations? According to research, it could be, with fewer people now expecting the value of their property to increase.

Confidence among “second steppers” is on the rise

We all know how difficult it can be taking that first step on the ladder, but what about the second step? In many cases, getting onto the next rung can be just as challenging, but happily, confidence among this cohort appears to be on the rise.

Mortgage arrears on the rise

Mortgage arrears had been falling for several years, driven by low mortgage rates and improved affordability – but unfortunately, that’s come to an end, with cases of mortgage arrears having now risen for the second quarter in a row.