We’ve known for some time that buying a property is often cheaper than renting a property, but it seems that the gulf between homeowners and tenants is widening.
New research by Halifax has revealed that first time buyers are saving, on average, just over £800 a year compared with tenants.
The biggest gains for those who’ve manged to get a first time buyer mortgage lie with homeowners in London (perhaps no surprise there), who are, on average, saving a staggering £4,606 a year – just by simply owning a property instead of renting one.
The smallest gains were in Northern Ireland, where those who have been able to arrange a first time buyer mortgage are saving £539 a year.
The reason behind this growing divide is twofold. Firstly, increased mortgage availability means that there are a growing number of first time buyer mortgage products available in the UK right now. Secondly, the reduction in interest rates on mortgages means that there is a raft of competitive mortgage deals that prospective homeowners can now benefit from.
Of course, there is one sticking point – the deposit. However, there are many people currently sitting on a deposit waiting for the perfect property. Sadly, perfection is extremely hard to attain and rarely presents itself. For those sitting on a deposit and waiting for the right time to make their move, the price for doing so could be anywhere between £539 to £4,606 a year.
Our advice is: –
1. If you ask yourself ‘can I afford a mortgage?’ and the answer is ‘yes’, then we would recommend that you consult a trusted mortgage broker. As a Guildford mortgage broker often see people sitting on a deposit but cautious about making that move. We’ll guide you through the process and make the journey towards owning your home even less stressful than renting a property.
2. If you’re not sure if you can afford a mortgage, then contact us anyway. We’ll be able to help you clarify your position and let you know where you stand. Also, there are a growing number of low deposit mortgages currently available that may suit you – not to mention a government-backed 5% deposit mortgage scheme that launched in April.
3. When choosing a mortgage broker, make sure that you select one that has access to as many mortgage products as possible. Not all mortgage brokers are equal, and by using one with restricted access to mortgage products you’re only restricting yourself. Complete Mortgages has access to a comprehensive panel of lenders, and can even access some of the more exclusive mortgage deals that not all brokers can obtain, too.
Whether you’re unsure whether you can afford to buy your first property, or know you can but need some help, contact the Complete Mortgages team on 01483 238280 or email info@complete-mortgages.co.uk. Our team of first time buyer mortgage experts will be able to help
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