It can sometimes be difficult to get the ball rolling with your mortgage application, especially if you are a First Time Buyer. There are lots of different things to get ready before you apply for a mortgage in York, and one of the most important things that you need is a deposit.
As a Mortgage Broker in York, we process many First Time Buyer mortgage applications and they all vary when it comes to deposit amounts, purchase prices and loan-to-value percentages. Here at Yorkmoneyman, we thought that it would be beneficial for those looking to buy their first property, to gain insight into the averages of these variables.
House prices in York are typically more expensive when compared to the rest of Yorkshire, in turn, this leads to a higher deposit contribution. From our results, we found that the average deposit amount for a First Time Buyer in York is around £36,000, whereas in Yorkshire the average is £23,000.
Whilst many First Time Buyers manage to save up a portion of their own deposit, a common occurrence in the home buying world is for family members or friends to provide additional support by gifting part of the deposit for them.
Sometimes, a gifted deposit can end up pushing an applicant into a lower loan-to-value bracket which opens the door to more competitive products and lower interest rates.
As we mentioned above, house prices in York are typically more expensive across the board. When it comes to First Time Buyers the average purchase price is currently £199,000. This is around 21% more than the average First Time Buyer in Yorkshire.
Now we have covered the average purchase price and average deposit for First Time Buyers in York. We can now work out what the average loan to value is.
With lower loan-to-value percentage, usually comes more competitive rates.
In York the average LTV is 82%, which is lower than the Yorkshire average of 85%. The infographic below shows how to work out your LTV percentage:
York has been voted the best place to live in Britain, so it comes as no surprise that this is a very sort after place to live and demand is high. If you are looking to purchase your first property in York, it would be good to speak to a Mortgage Broker. We can then look at getting you agreed in principle with a lender, putting you in the best possible position to have any offers you would like to put forward accepted.