This week the JDG team have been chatting about the problems first times buyers are facing. Many first time buyers are finding that it is now cheaper to buy than rent, despite the increase in the interest rate. This is basically because, rents are rising too.
Whilst first time buyers can still get mortgages with just a 5% deposit, most banks such as Barclays prefer a minimum deposit of 10%. Given that the average the average 2 bed house in Lancaster is now £146,792, this is a deposit of £14,679.
Would it surprise you to read that the average deposit paid by a first-time buyer in the UK is 24% of the purchase price (UK Finance), with many putting down a larger deposit down for their first home. In London it is the highest. The average first time buyer put down a deposit of 32% which equates to £144,500. They could buy a 2 bed home in Lancaster for cash outright!
In the northwest the average deposit is actually 20%. The graph above shows the average first time buyer price in the northwest. If we work on a 2 bed terrace average price in Lancaster, this equates to £29,358. It is still a lot of money, hence the banks of Mum and Dad which we have talked about before often are helping out.
Are you a first time buyer looking to save a deposit for your first home? If so, please let us know and we can share more tips with you!
Thanks for reading
Michelle x
