Mortgage Advice in Birmingham for First Time Buyers

For some first time buyers in Birmingham, buying a house and taking out a mortgage is a daunting experience and arguably one of the most significant financial commitments of your life.

In your case, it would be best to prepare and save for a large deposit before proceeding with a mortgage in Birmingham.

After all, deposit amounts, purchase prices and loan-to-value percentages for first time buyers vary based on the individual and their circumstances. We recently carried out a study on first time buyers in Birmingham compared to Birmingham to see the averages for these variables. Here is a closer look at the data.

Average Deposit Amount

We find that higher house prices require a higher deposit to receive better rates for the borrowing amount.

When looking at house prices in the West Midlands, the average deposit is the same across the board. The study showed that the average first time buyer deposit amount in Birmingham is around the £32,000 mark, whereas in Birmingham, the average was around £35,200.

Many first time buyers can save up a portion of their deposit for themselves; others received a gifted deposit from a family member or a friend.

Having this gifted deposit provides extra support if the first time buyer struggles to make up the remaining funds. A gifted deposit can lead to more competitive products and lower interest rates.

Average Purchase Price

House prices in the West Midlands are relatively balanced out. Birmingham average purchase price is £181,000, only a 12% increase from the rest of the neighbouring areas like Birmingham which stands at £205.750.

Average loan-to-value (ltv)

Your loan-to-value percentage is calculated by dividing the mortgage amount by the property price and multiplying by 100.

The lower the loan-to-value, the more favourable rates you are likely to be offered. Reflecting on the data gathered, the average LTV in Birmingham comes in at around 82%, which is 1% less than Birmingham.

Are you first time buyer in Birmingham?

With a vibrant economy, some very affordable living and a friendly atmosphere, Birmingham and its surrounding areas are a prime destination for people to live.

With gifted deposit popularity on the increase and lower interest rates, Birmingham could be ideal for first time buyers to invest in their first home.

As a mortgage broker in Birmingham, we would advise that you speak to your mortgage advisor and get an agreement in principle turned around as quick as possible so you can start your first time buyer in Birmingham mortgage journey in Birmingham right away.

Date Last Edited: December 6, 2023