The North East is the most affordable place to save for a deposit, One77 Mortgages has found.
One 77 looked at the average net salary across the UK and how quickly this allowed aspirational homeowners to save for a mortgage deposit.
It takes prospective homeowners in the North East an average time of seven months to save for a 10% deposit.
According to the research, London and the South East are the most unaffordable to save for a deposit with it taking 17 and 14 months respectively.
Alastair McKee, managing director of One77 Mortgages, said: “Of course, the wage on offer and the price of property is relative to each area and you still need to account for the cost of living, but this research highlights where you have the best opportunity of saving a deposit and getting on the ladder in the shortest space of time.”
The research found that Burnley is the best place to buy a house as the net salary available calculates to a 10% mortgage deposit in four months.
In contrast London dominates the top 10 longest times to accumulate a 10% deposit, with the City of London the least affordable foot on the ladder at 25 months.
McKee continued: “Whilst it’s no secret that London and the South East provides a much greater obstacle for aspirational homeowners, it’s alarming to see just how large the disparity is, with it taking over five times as long to save a deposit in the City of London compared to Burnley and that’s despite a much larger wage on offer.
“The compromise that many are forced to make in these regions is a much longer commute in order to secure a higher wage while looking to buy in an area that offers a much more affordable price tag.
“There are currently a number of lenders that will provide you with a mortgage based on a deposit as low as 5%.
“However this will mean a less favourable interest rate and we would advise anyone stretching to buy on these terms to hold off and wait until they have accumulated a larger deposit. It will be well worth it in the long-run.”
Nationwide the net salary available would allow a home buyer to save a 10% deposit on the average house price in 11 months.
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