New research by estate agent Coulters Property has collated average house prices and salaries in all major UK cities to reveal where you need to work the most or least to repay your mortgage. . 15% deposit.
A mortgage is one of the most important investments most people will make in their lifetime, and it can sometimes take a lifetime to pay off. Of course, this depends on the value of the property. So the most expensive places to buy a home in the UK are also the places where it takes the average person the longest to pay off their mortgage.
Mr Coulters took the UK’s 50 most populous towns and cities, used data from the Office for National Statistics (ONS) to determine the average gross hourly wage for all employee jobs in the area, and then We calculated the average house price of Towns and cities as of August 2020, according to the Land Register UK House Price Index.
Since the 2020 global pandemic has led to more lenders asking for at least 15% down payment, Coulters uses this figure to estimate the amount needed for the “average home” in each town, city and region. I calculated the amount of the deposit. They then calculated the average number of hours and workdays (based on an average eight-hour workday) it would take each town, city, and region to repay the average mortgage amount.
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Data provided by Coulters Property.
Coulters research found that people living in the south-east, south-west and east of the UK were twice as likely to require working hours as those in the north, ranging from 24,487 days in London to 24,487 days in the UK. It turned out to be 9,064 days. Northeast.
This means that a Londoner would need to work three times as many working days on average as someone living in the North East to pay off the average mortgage amount of £415,785.
Elsewhere in the UK, it takes 11,734 hours to pay off a mortgage in Wales, compared to 15,005 hours in Northern Ireland and just 9,283 hours in Scotland. short. However, Sunderland topped the list as the region with the easiest mortgage repayments, with 7,905 hours of work required to cover an average £96,678 mortgage.
Graph courtesy of Coulters Property.
Mike Fitzgerald, executive chairman of Coulters Property, commented on the report’s findings:
“Applying for a mortgage to buy a home is a significant investment and can take a lifetime to pay back to the lender. The repayment period of a mortgage depends on the location, property price, and several other factors. determined by socio-economic factors.
“We’ve all heard of the ‘North-South divide,’ and this applies to the real estate market as well. As our research shows, mortgages in the South are significantly more expensive than mortgages in the North. , it has been shown that homeowners in the Southeast and Southwest take almost twice as long to pay off their mortgages compared to those in the Northeast.”
