The cost of taking the first step onto the property ladder can vary by more than £150,000 depending on where you live in the UK, a new piece of research shows.
Average prices of first homes range from £100,831 in the North East to £260,261 in London, the research report from Clydesdale and Yorkshire Banks has found.
The figures also show that the average prices for first time buyers are lower in most areas than previous years. In the South East the prices are £16,500 lower than in 2007, whereas in London the difference is just £5,403.
‘House prices vary significantly throughout the UK and these figures indicate that in some areas there is more than £16,000 difference in the cost of a first home compared to prices in 2007,’ said Steve Reid, retail director for Clydesdale Bank and Yorkshire Banks.
‘First time buyers are vital to keep the property market moving and with low prices and competitive products available from Clydesdale and Yorkshire Banks now could be the perfect time to take a first step on the property ladder,’ he added.
The recent lower prices also mean that buyers could require a smaller deposit than would have been required in 2007, making it easier to take a step onto the property ladder with a 95% LTV mortgage.
The Banks are one of only a handful of lenders still offering a 95% mortgage to those looking to buy their first home and remains committed to supporting first time buyers.
The mortgage is fixed for three years at an initial rate of 6.99% before moving to the standard variable rate after this period. There is an arrangement fee of £599 and the bank will pay for one home valuation.
The Banks also offer two 90% LTV mortgages fixed for three years. With 90% LTV the rate is fixes at 5.99% with an arrangement fee of £599 or fixed at 6.29% with no fee.
Last month the Banks launched a new savings account to help first time buyers build a deposit and get a foot on the housing ladder. The Regular Home Saver account is a simple way to save monthly towards a deposit on a first home, with the flexibility to vary payments during the term and the added bonus of up to £1,000 cash back when taking a Clydesdale or Yorkshire Bank First Time Buyer (FTB) mortgage.