A recent survey has revealed that Hull is the most affordable city for first time buyers. The Hull Daily Mail reports that the average house price in the city is £128,107, compared to the national average of £281,160. The second most affordable city is Stoke on Trent, with an average asking price of £136,026.
This is great news for anyone looking to take the first step on the property ladder in Hull and the surrounding areas. If you are thinking about applying for a mortgage, there are some steps you can take to improve your chances of success.
The first step is to save for as much deposit as you can afford to, as you will need a minimum of 5% of the value of the property you want to buy. The more deposit you are able to put down, the lower your mortgage interest rate will be, and this means that your monthly repayments will be less.
If you are aged between 18 and 39, you can take advantage of the Lifetime ISA scheme. This allows you to save up to £4,000 a year for a mortgage (or towards retirement), and it will be supplemented by a government bonus of 25% a year, up to a maximum of £1,000.
Keep an eye on your credit score, because mortgage companies will look at this information to assess how much risk you represent to them. For example, if you have a history of not meeting loan repayments or debt, this will make it more difficult for you to get a mortgage.
There are also government schemes to assist first time buyers, such as the Shared Ownership scheme. This allows you to pay part rent and part mortgage on a property, and increase your share of the ownership in stages.
If you are looking for estate agents in Kingswood, please get in touch today.