First time buyers aim high according to new research from Clydesdale and Yorkshire Banks
18th February 2014
A three bedroom home tops the wish list for the largest percentage of First Time Buyers according to new research from Clydesdale and Yorkshire Banks.
The Annual First Time Buyers Survey has revealed that a three bedroom house is the top choice for almost a third (32%) of those surveyed, whilst 24% said they would prefer a two bedroom flat.
A two bedroom house is the next on the starter property list for more than a fifth (22%) of the nation’s first time buyers with 10% opting for a three bedroom flat. Just 7% said they would aim for a one bedroom flat and only 3% for a one bedroom house.
The survey also highlights the property trends in different regions with 63% of Londoners understandably opting for a flat whilst only 37% prefer a house. In contrast 87% of those surveyed in Wales select a house with only 13% choosing a flat.
Regional Breakdown of preferences for flats v houses
| Region | Flat | House | Other |
|---|---|---|---|
| UK average | 41% | 57% | 2% |
| East | 37% | 63% | n/a |
| London | 63% | 37% | n/a |
| Midlands | 35% | 65% | n/a |
| North East | 48% | 52% | n/a |
| North West | 29% | 71% | n/a |
| Scotland | 50% | 48% | 2% |
| South East | 34% | 63% | 3% |
| South West | 37% | 56% | 7% |
| Wales | 13% | 87% | n/a |
| Yorkshire | 33% | 65% | 2% |
The annual research also revealed that the majority (59%) of those surveyed rent before buying their first home while 23% stayed with their parents or other family members.
The next generation of homeowners also seem financially aware with 35% stating that they want to buy a home because it is an investment for the future while a further third (33%) believe it makes financial sense and 16% outlined that buying a home is cheaper than renting.
Andrew Pearce, Retail Director for Clydesdale and Yorkshire Banks, said:
Clydesdale and Yorkshire Banks have been unwavering in their support of First Time Buyers and we continued to offer both 95% and 90% LTV mortgages while many others withdrew these products.
This research shows that it is still challenging to take the first step onto the property ladder and many are now aiming for a larger property as their first home as they believe this is a good investment for the future.”
Clydesdale and Yorkshire Banks are currently providing a range of competitive mortgages* for First Time Buyers, including new 95% and 90% Loan to Value products fixed for three years at 4.89% and 3.89% respectively. As well as a £250 cash back offer and no arrangement fees the mortgages come with a free standard valuation and there is no funds transfer fee*
For more information, customers can contact their local branch, call 0800 22 24 26 for Clydesdale Bank or 0800 20 21 22 for Yorkshire Bank, or visit our websites: www.cbonline.co.uk or www.ybonline.co.uk
First time buyer case study
Lisa Gaughan, Glasgow
Lisa Gaughan (30) recently took her first step onto the property ladder with a Clydesdale Bank First Time Buyer 90% LTV mortgage.
Credit Controller Lisa got the keys to her first home which she is planning to move into with her boyfriend, Gerald McManus (28), in December 2013 and is currently renovating the property before moving in in March.
Having lived with her parents up until now, Lisa has purchased a traditional three bedroom semi-detached house in Mosspark Drive in the south side of Glasgow for £105,000.
Lisa secured the Bank’s First Time Buyer 90% LTV mortgage for £90,000 with a fixed rate of 3.99% for three years and also benefited from the Bank’s £250 cash back and no arrangement fee offers. Lisa had used a Clydesdale Bank Regular Home Saver Account to save her deposit and so also received £1000 cash back through the account.
Lisa saved her £15,000 deposit over a year and a half and then spent almost eight months searching for her dream home.
Lisa met with her Clydesdale Bank mortgage adviser who took the hassle out of the mortgage process and handled everything on her behalf.
Lisa said:
I was very pleased with the service and product provided by Clydesdale Bank. The mortgage adviser was brilliant – I simply gave her the information on my chosen property and she took it from there, turning everything around quickly and efficiently.
First time buyer case study
James & Sarah Seabury, Sunderland
Husband and wife James and Sarah Seabury recently took their first step onto the property ladder with a Yorkshire Bank First Time Buyer 95% LTV mortgage.
Town planners James (30) and Sarah (28) moved into their new home in November 2013 just in time for Christmas and the arrival of their new baby daughter, Alice, who was born on New Year’s Day.
Having previously lived in rented accommodation, James and Sarah purchased a four bedroom modern semi-detached house in Houlsyke Close in Sunderland for £140,500. They secured a First Time Buyer 95% LTV mortgage for £133,475 with Yorkshire Bank at a rate of 4.99% fixed for three years and also benefited from the Bank’s no arrangement fee offer.
James and Sarah paid a 5% deposit of £7,025 on the property which had taken them around two years to save.
The couple went to Yorkshire Bank for an initial consultation with a mortgage adviser as they were aware that the Bank was one of the only lenders offering 95% LTV mortgages to First Time Buyers.
James and Sarah knew the area of Sunderland they wanted to buy in and so following their mortgage meeting which determined the level of loan they were able to borrow, it only took them a few months to find their dream home.
James said:
We went to Yorkshire Bank for a mortgage as they were one of the only Banks offering the type of mortgage we were looking for. Our mortgage adviser was extremely helpful, explaining everything we needed to know. He contacted us via email to speed up the process, keeping us informed when to expect documents in the post and guiding us through what we needed to return.
Our original 90 day mortgage offer had just expired by the time we found the house we wanted to buy but the mortgage adviser was able to seek re-approval of the offer in order that we could purchase the property. It was definitely the mortgage adviser who made the whole process a lot simpler and less stressful for us.”
*Terms and conditions apply. Loans are subject to status.
You can find impartial information and guidance on money matters on the “Money advice service” website.
Clydesdale Bank is covered by the Financial Services Compensation Scheme (FSCS), Find out more.