Key takeaways
Is it still cheaper to buy than rent?
Comparing the cost of renting and buying, Zoopla examined whether a renter can afford to buy the home they live in.
You would save an average of £200 by paying a mortgage (with a 2.5% rate) rather than renting.
On a 4% interest rate, it’ll still be slightly cheaper to pay a mortgage than to rent in most places.
But buying will edge into being more expensive than renting in the high value areas of London and the South of England.
5 Tips To Help First Time Buyers:
1. Broaden your search area
Obvious, but makes sense if you rent in a city centre.
2. Use a government buying scheme
The government has launched several first-time buyer schemes to help you get on the property ladder.
The Help to Buy Equity Loan scheme is a popular choice but ends in October.
The First Homes scheme offers discounts of between 30% and 50% on new build properties to local first-time buyers and key workers.
There are several other schemes that can help you get on the ladder too.
3. Team up with friends or family to get a bigger deposit
Offset rate rises by coming up with a bigger deposit.
Many are turning to family members or pairing up with partners or friends to get a deposit together.
Use the available ISAs and tax free savings schemes to save for a deposit.
Many parents and grandparents use ‘equity release’ schemes to help fund a deposit.
4. Do your homework on different types of mortgages
Learn how different types of mortgages are impacted by base rate changes.
Speak to a mortgage advisor. Some specialise in first time buyer mortgages, so tap into their knowledge as well as doing your own research.
5. Keep up with your local market
Local housing markets all different to the national picture and you’ll be in the best position to get on the market at a good price if you know what’s happening nearby.
Sterling crisis could drive up interest rates
Interest rates and inflation could soar if the Pound continues to fall against the Dollar.
Goldman Sachs predict that inflation could reach 20%!
Energy will rise again next month, food prices are rising at more than 10% and unions are striking for higher pay deals and some want to minimum wage to go up to £15 per hour.
Germany now has the highest inflation rate for 40 years.
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