As a Mortgage Broker in Sheffield, we know that First Time Buyers often struggle to get their mortgage application started. Sometimes it can be a problem with their application, deposit, credit score, etc. It’s best to get everything right before you apply. This is a reason why approaching a Mortgage Broker in Sheffield could be a great idea as an advisor will work with you to get your application looking up to standard.
We have worked with thousands of First Time Buyers in Sheffield and every single applicant’s scenario is unique. They always have different deposit amounts, purchase prices and loan-to-value percentages. Here at Sheffieldmoneyman, we have collected data on First Time Buyers mortgage applications and focussed on these three variables.
There is quite a difference when you compare Sheffield’s average deposit amount for First Time Buyers to the whole of Yorkshire’s. Yorkshire’s average deposit amount for a mortgage is £23,000 and Sheffield currently sits at £29,300 which is 27% more than the whole of Yorkshire.
Whilst some First Time Buyers will manage to save their whole deposit, more often than not, the applicant will receive a helping hand from family members or friends. As a First Time Buyer, saving up your full deposit can be difficult and that’s why people sometimes gift part of the deposit to help the applicant.
Occasionally, a gifted deposit can push an applicant into a lower loan-to-value bracket which can allow them to access more competitive deals and lower interest rates.
Since there is a 27% difference between the deposit amounts, you would think that there would be a big difference between the average purchase prices. However, this is not the case, Sheffield’s average purchase price for First Time Buyers is £165,000 and Yorkshire’s is £157,000. This is only a 5% difference.
This is because of the loan-to-value percentage. In Sheffield, the loan-to-value is 82%, whereas the whole of Yorkshire averages at 85%. Usually, a lower loan-to-value percentage will come more competitive rates.
Once you have your deposit amount and your purchase price, you can then work out your loan-to-value percentage. In Sheffield, the average loan-to-value percentage is 82%, and here’s how you work it out.
In Sheffield there are a lot of housing options available and many residential areas for First Time Buyers to settle into. Coupled with this is the fact that prices are affordable amongst First Time Buyers in Sheffield, so we could see it become a starting place for your mortgage journey in South Yorkshire.
If you are at the point where you feel ready to start your mortgage journey as a First Time Buyer in Sheffield, your ideal next step would be Mortgage Broker in Sheffield. For example, Sheffieldmoneyman are able to look at getting you agreed in principle with a lender, allowing you to be in the best possible position to have any offers accepted that you are looking to put forward.
Date Last Edited: September 15, 2023