Conditions for first-time home buyers in Derby are now ripe

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The Santander Mortgage research revealed that the vast majority of potential first-time buyers in Derby and the UK, excluding London would be better off buying a property than continuing to rent.

 

Research shows that, would-be buyers in Derby and other areas currently renting outside of London could save themselves an average of £1,040 a year if they were able to own their own property.

 

The average monthly rent in the UK (excluding London) is currently just over £420 compared to monthly repayments of £334 for the average first-time buyer - equating to an average saving for homeowners of £86 a month.

The research into typical first time buyer flats and terraced properties found the average price across the country to be £115,657.

 

This means that a first-time buyer, applying for a 75 per cent loan-to-value mortgage (the average LTV for first-time buyers according to the Council of Mortgage Lenders) would require a deposit of £28,914.

Phil Cliff, director of mortgage marketing at Santander UK said: "People have been justifiably cautious in approaching the housing market in recent months but this research strongly supports the idea that in the majority of cases owning can be less expensive than renting.

The savings to be made through buying, as opposed to renting, have increased dramatically in the last six months. In October last year the average saving for those potential first-time buyers able to buy was £52 a month. The climb in potential savings to £87 now represents an increase of 67 per cent.