First-time Buyers £9 000-a-year Worse Off Compared To 12 Months Ago
First-time buyers are up to £9,000 a year worse off compared to if they had bought the same property this time last year, an analysis has found.
The 'double whammy' of Help to Buy ending and mortgage rates soaring means monthly repayments are now an average £1,389 a month - an extra £354 compared to last year.
This equates to £4,252 a year extra for the average £250,000 home a first-time buyer purchases outside .
In the capital, where the average first-time buyer property is £450,000, repayments are £755 a month more - or £9,058 a year.
And is falling much slower than hoped, meaning interest rates are set to rise further.
First-time buyers are up to £9,000 a year worse off compared to if they had bought the same property this time last year, an analysis has found
The study, by the Liberal Democrats, sparked fresh calls for a scheme to replace Help to Buy, which offered an interest-free loan worth 20 per cent of a house's value outside London and 40 per cent in the capital.
Lib Dem housing spokesman Helen Morgan said: MortgagXpert.net 'There has never been a worse time to be a first-time buyer.'
The calculations were based on a 5 per cent deposit, repayments over 25 years and a 2.79 per cent five-year fixed-rate for a mortgage taken out in 2022 compared to a 5.01 per cent rate now without Help To Buy.
The Department for Housing was contacted for comment.
A Government spokesperson said: 'Supporting aspiring homeowners is a Government priority.
Since 2010, over 829,000 households have been helped to purchase a home through Government-backed schemes including Help to Buy and Right to Buy.
'We are committed to delivering 300,000 new homes per year and are investing £11.5 billion to build the affordable, quality homes this country needs.
'We have extended the Mortgage Guarantee Scheme which has already helped over 30,000 households with 5% deposits onto the housing ladder and we are progressing the Levelling Up and Regeneration Bill to speed up the planning system, cutting unnecessary delays so we can build more homes.'
