One of the most notable facts is that the average first time buyer (FTB) deposit in Camden, at £145,148, is over five times higher than the average national FTB deposit (£27,537). The average house deposit in Camden actually costs £10,000 more than the average UK FTB house (£135,468).
Further to this, the Local Authority of Kensington and Chelsea is so expensive that it has priced itself out of the research, with so few first homes bought in the area that the sample size was too small to include.
Despite the high prices, there are still options available to first time buyers, and the mortgage market is better than many people think.
Stephen Noakes, Mortgage Director, Halifax, said: “Halifax’s recent Generation Rent research showed that only four in every 10 people think they could get a mortgage, yet we accept eight out of every 10 applications. The mortgage market in London isn’t what it used to be, but it isn’t as bad as many people think – lenders are still lending. In the past year alone we’ve provided over £1.5billion in mortgages to first time buyers in Greater London.
“Londoners shouldn’t just assume they won’t get a mortgage – always speak to a mortgage advisor and find out. You can arrange an appointment with an advisor in any Halifax branch; an advisor will look at your individual circumstances and discuss the various options available, such as buying a new build property.
“The NewBuy scheme enables first time buyers to purchase new build properties on a higher loan to value mortgage; up to 95% in many cases. There are thousands of new builds within the M25, usually costing between £160K and £500k, so you could get a brand new property with a deposit as low as £8,000. There are also a number of areas that have relatively lower average house prices while still providing convenient access to work – such as Southwark for the City, or Lewisham for Canary Wharf."
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