Green light for first time buyers to enter property market

First time buyers have been given the green light to enter the property market, according to Abbey Mortgages.

Abbey Mortgages have found that first time buyers would now be better off buying a property than renting, particularly in regions outside London.

The average mortgage is £382 per month outside London, for those with 25% deposits, whereas the average rent in those areas is £434.

This represents an average saving of £52 per month or £624 a year, although the costs of buying a property such as legal and survey fees have to be taken into account.

First time buyers in London are not so fortunate as the high property prices mean that mortgage costs outweigh rents, even for those who can put down large deposits.

Nici Audhlam-Gardiner, Director of Abbey Mortgages, commented:

“Our latest research shows there is hope for first time buyers trying to buy their first home.”

“It’s now cheaper in all bar one of the regions to buy rather than rent and shows that saving for that all important deposit is so worthwhile too.”