Mojo: Bradford most affordable for FTBs

Jake Carter

June 18, 2021

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Bradford is the most affordable location for first-time buyers (FTBs), according to research from Mojo Mortgages.

With an average property price of £145,981 and an average annual salary of £28,790, this equates to 14.30% in terms of monthly mortgage payments as a percentage of income – the lowest in England.

Blackpool (15.94%) and Stoke-on-Trent (17.35%) followed closest behind.

In contrast, Oxford was found to be the least affordable location in England for first-time buyers, with the average monthly mortgage repayment taking up 49.37% of a couple’s take home pay.

This is based on an average property price in the city of £540,005 and an average annual salary of £31,232.

Bath (47.65%) and London (47.12%) followed close behind highlighting the difficulty of getting onto the property ladder in these areas.

Mojo said that the government’s First Homes scheme could make a significant difference to FTBs’ monthly outgoings once on the property ladder in terms of mortgage payments as well saving for a deposit.

For example, for those in London that purchase a property under the scheme, they can expect to pay on average around £766 less a month on their mortgage repayments, taking their percentage spend of income from 42.17% to 32.97%.

Cassie Stephenson, director of mortgages at Mojo Mortgages, said: “While of course it’s important to remember the 30%-plus discount will apply throughout the lifetime of the property and will apply when you eventually sell for the first time, a First Homes scheme property is still very much worth considering, regardless of location as an option for first-time buyers looking to get onto the property ladder.

“The savings available – particularly allowing first-time buyers access to higher LTV mortgages through reduced deposits – could also mean better access to lower interest rates and improved overall savings across the lifetime of a mortgage.

“Plus of course, purchasing a home is a significant long term investment towards your financial future as opposed to lining a landlord’s pocket.

“We’re excited to see how this new scheme develops over the coming months as new properties and developments continue to crop up across England.”

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