10 places you can get onto the UK property ladder with a salary of £20,000 have been revealed.
Topping the list is Inverclyde, where buyers can buy a property with a salary of £20,040, according to Zoopla data provided exclusively to The Sun.
This area of mid-west Scotland has some of the cheapest house prices in the UK, with typical prices coming in at just £106,100.
This means someone on an annual income of £20,040 can afford to buy a property based on borrowing 4.5 times their income, which is the standard amount banks and building associations will lend.
Zoopla’s top 10 list also includes Blackpool, where the average house price is £123,600.
A tenant earning a salary of £23,340 would be able to afford a property at such a price in a popular seaside town.
Burnley is also on the list, with an average house price of £120,100 and a required annual income of £22,680.
Borrowers must meet all of the bank’s other lending criteria, which may include having minimal debt.
Zoopla has calculated how much salary it would take to get a mortgage on the listed properties, assuming the borrower can save up ¥15 per down payment and borrow 4.5 times their salary.
Some financial institutions allow first-time buyers to borrow more than 4.5 times their salary if they meet certain lending criteria; It is widely considered to be the maximum value.
Zoopla’s calculations are a simple estimate of the annual income required and do not take into account individual circumstances.
For example, consider the average house price in Inverclyde of £106,100 and deduct 15 per cent of your earnest money deposit. This leaves you with £90,185.
Divide this number by 4.5 and the salary you need to get a mortgage on that property is £20,040.
Scotland dominates the top three spots on the list of the cheapest places to climb the property ladder with a salary of around £20,000.
In second place is East Ayrshire, with an average house price of £106,800.
Taking into account the 15% down payment and income multiplier, a borrower would need a salary of £20,160 to buy a typical property in the area.
In third place is West Dunbartonshire, where the average house price is £110,000 and the annual income required to buy is £20,770.
Although house prices tend to be cheaper north of the border, there are still places within the UK that are on the list.
These include Hartlepool, which ranks fourth on the list. The average price is £114,100 and the required annual salary is £21,550.
Middlesbrough are also on the list for £115,900 and £21,890 respectively.
The remaining areas on the list are Kingston upon Hull, North Ayrshire and Sunderland, where the required annual income to buy property is £21,630, £21,660 and £23,000 respectively.
The average price of properties on the list is in sharp contrast to the typical UK house price, which is currently £329,648.
Zoopla defines regions as local authorities and the data covers England, Scotland and Wales.
The data comes after the Bank of England cut interest rates for the first time in four years earlier this summer.
The Bank of England kept interest rates on hold this month but is widely expected to cut them again by the end of the year.
When the Bank of England lowers borrowing costs, this tends to be passed through into lower mortgage rates.
Mortgage rates have risen sharply in recent years, but have fallen from their peak during this time.
According to Moneyfacts, the average interest rate on a two-year fixed-rate mortgage is currently 5.46%.
This is a significant increase from a year ago, when the average two-year mortgage rate was more than one percentage point higher at 6.59%.
Mortgage experts said further reductions in mortgage rates would make life easier for borrowers in the coming months.
Mark Harris, chief executive of mortgage broker SPF Private Clients, said: ‘Given rising rents, rising costs of living, mortgage rates and property prices, getting onto the housing ladder seems impossible. Maybe.
“However, there are other parts of the country that may be less convenient for work and family, but can still be achieved with relatively low wages.
“For those who have their heart set on a more expensive location, saving hard, asking family for help, and accepting longer mortgage terms are the usual paths to homeownership.
“Lower mortgage rates should make life easier in the coming weeks and months, but the goal of homeownership remains beyond many people.”
The New Labor government’s first autumn statement will be released next month.
Many first-time buyers will be hoping for a favorable announcement.
Such announcements could come in the form of stamp duty benefits.
First-time buyers are currently eligible for stamp duty relief. However, these are scheduled to end in April next year.
Some may hope that current levels will be extended, reducing purchasing costs for first-time buyers.
Barring further announcements in the next Budget, the threshold will be reduced from the current £425,000 to £300,000, meaning more first-time buyers will end up paying stamp duty.
First-time buyers buying homes costing between £500,000 and £625,000 will also lose out as they are currently paying a lower 5% interest rate on sums in this category.
Daniel Copley, consumer expert at Zoopla, said: “Housing prices are still on the rise in many parts of the country, but if you’re willing to expand your horizons, there are many more affordable places to get on the property ladder. There are.” Less than £20,000.
“These include areas in the north-east and north-west of Scotland, many of which have easy access to major cities and good transport links.”
System useful for first-time buyers
If you’re thinking about buying your first home, there are a number of schemes to help you get on the ladder.
For example, the First Home Scheme allows first-time buyers to purchase new homes built by developers at significant discounts of 30% to 50% off the asking price.
The Mortgage Guarantee Scheme is encouraging more banks and building associations to offer 95% loan-to-value (LTV) mortgages, so you only need a 5% down payment.
Shared ownership aims to support people on low incomes in the UK by buying part of a property and renting out the rest.
