First-time Buyers

Revealed: The UK’s best and worst places to be a first-time buyer

Christina Hoghton
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Christina Hoghton

Getting on the ladder is expensive, but in some parts of the UK it’s much easier than others

Newcastle is the best place for first-time buyers to purchase in the UK, according to Mojo Mortgages.

The digital broker analysed mortgage costs and average incomes to create what it calls a ‘true first-time buyer affordability index’.

It revealed that Derby, Northampton and Liverpool are some of the most expensive places to purchase for first-time buyers. That’s because the cost of a property based on the price per square metre is relatively high in these areas, while the average salary is relatively low.

Costs to consider

As well as looking at the average local salary and the average monthly mortgage cost, Mojo also examined the costs of monthly bills, commuting expenses and the price per square metre to buy a house or an apartment in that area.

The price per square metre in Newcastle was £1,650, making it cheaper than any other city in the UK, and the average mortgage payment being just 29.05% of a buyer’s income.

Aberdeen ranked second, where the average monthly mortgage payment is 29.57% of a buyer’s average income, and the price per square metre £2,250.

Least affordable areas

Along with Derby, Northampton and Liverpool, London was unsurprisingly named as the worst place to purchase if you’re a first-time buyer.

If you buy a city centre apartment in the capital, you’ll need to earn 45% more than average monthly salary to be able to afford your mortgage payments. The price per square metre also stands at a staggering £13,068.

Richard Hayes, CEO of Mojo Mortgages, said: “Our first-time buyer index gives potential homebuyers the chance to see where they could buy, and what’s affordable for them in some of the most popular towns and cities in the UK.”

Martin Reynolds, chairman of broker trade body the Association of Mortgage Intermediaries, said: “The output from the inaugural Mojo Mortgages’ property index provides an interesting take on where the current first-time buyer hot spots and challenges are. Whilst some of the data shows expected challenges in London it is surprising in other areas.”