There are mortgages available for the first time buyer that almost equal rents in monthly payments.
Put down a deposit of 10% on the price of a terrace house at £100,000 and repayments could be around £650 per month. Put down 10% deposit on a house at £85,000 and repayments could be around £550 per month.
£500-£600 per month is about the average rent for a terrace house.
There are first time buyers in the market.
They could have been putting off buying a house, but while they wait their deposit can be saved. They have seen prices fall and, if you can buy your first house with a 25% deposit you benefit from interest rates of 5% or less we understand.
(Why should there be a difference in rates - with a deposit of 10% mortgage rates seem to be 5.5-7.5% but with 25% deposit less than 5%).
There would be a major upturn in market transactions if prices at the bottom end (not being derogatory - say the starting prices!),could meet the aspirations of the first time buyer, waiting at home, or in rented apartments, for repayments to fall to an affordable level.
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