22 Jun

Buying your first home home just got (even) harder | Patrick Collinson

With Nationwide withdrawing its 95% mortgage, first-time buyers now need rich, generous parentsTenants in England are paying private rents averaging £700 a month, according to official figures this week. Yet with interest rates at super-low levels, £700 a month is enough to meet the monthly payments on a £190,000 mortgage (assuming a 30-year term and 2% rate). Given that the average house price in the UK is £219,000, why aren’t more young people buying rather than renting?The reality is that the absolute level of house prices, while very high in historic terms, is not the biggest problem; it’s finding the money for the deposit that holds most people back. And last week that problem got a whole lot worse. Continue reading…

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