Ever wondered who London’s first-time buyers are? Well according to research* carried out by mortgage broker Alexander Hall, they’re in their early-30s, living in East London and are spending an average of £445,000 on their first home.
The headline findings** might suggest that owning a home in the capital is out of reach for some. But a deeper look at the data shows the barriers to entry are not as high as they first appear. In particular, schemes such as Help to Buy make buying a property in the capital an achievable ambition.
In fact, 9% of first-time buyers in London have a deposit of £25,000 or less.
There are lots of first-time buyers out there taking advantage of the government’s Help-to-Buy scheme. In London, Help-to-Buy London allows first-time buyers to borrow up to 40% of a newly built property’s value as an equity loan, with buyers needing a deposit of only 5% from their own funds.
And it’s not only Help-to-Buy schemes that are allowing first-time buyers to step onto the property ladder. There are a number of mortgage lenders out there that offer loans up to 95% of a property’s value, without needing to sign up for any schemes.
As many as 50% of first-time buyers have a deposit of 20% or less of the property they are purchasing.
And while the average price for a first-time buyer home in this study is £445,000, we’ve got plenty of properties for sale below this average for those ready to step onto London’s property ladder.
* Research is based on first-time-buyer applications submitted by Alexander Hall on behalf of their clients between Jan – Sept 2016
** c. 90% of mortgage purchases through Alexander Hall are on properties in Greater London.
Contact Alexander Hall today on 08000 38 37 36, or check out their website for more details.
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