York is home to some very affordable properties which are perfect for first time buyers, looking to get their foot on the property ladder.
We have already looked at the approximate salary you need to afford the most expensive homes in York- but what about more affordable homes on the other end of the spectrum?
There are many factors that impact the cost of a mortgage; lenders assess affordability on a case by case basis and salary isn’t the only deciding factor.
Tom Newcombe, mortgages spokesperson for MoneySuperMarket said: “Affordability depends a lot on a customer’s outgoings as well as income, but in general lenders will hardly ever lend above five times your income- for most people, four and a half times will be the limit.”
Tom added that “the general rule is that you shouldn’t spend more than 30% of your monthly income on a mortgage” if you want to pay the bills and still live comfortably- but this does depend on the customer’s circumstance.
He also explained that: “It is always less expensive to take a smaller mortgage over a shorter term if possible.
“Remember that most mortgages allow you to make overpayments, usually up to 10% of your balance every year – this can be an effective way of reducing how much interest you pay, whilst making sure you don’t overcommit on your agreed mortgage payments.”
Overall, Mr Newcombe explained that you should ”weigh up your personal circumstances only commit to paying what you can comfortably afford.”
How we did the maths
Our estimations are based off the MoneySuperMarket recommendation that your mortgage should only take up 30 per cent of your total annual income- that’s if you still want money for the nicer things in life.
Our figures are also based on a 2 per cent interest rate, 10 per cent deposit and a 25 year repayment term.
With that being said, here are five of the cheapest homes for sale in York- and the estimated salary you would need to buy them.
Langsett Grove
Cost of house: £150,000
Estimated annual mortgage cost: £6,864
Annual salary when mortgage is 30% of total: £22,880
Right now, this is one of the most affordable properties to buy in York.
According to our calculations, you need to earn around £22,880 per year in order to pay your mortgage and live here comfortably.
However, this doesn’t take the additional household bills into account which Zoopla estimated to be an extra £6800 per year.
The property itself has a lot to offer and would be ideal for first time buyers.
It is beautifully presented and has one double bedroom.
Best of all, there is a low maintenance garden to the rear of the property.
Cromer Street
Cost of house: £160,000
Estimated annual mortgage cost: £7320
Annual salary when mortgage is 30% of total: £24,400
This one bedroom cottage is a new addition to the property market.
If you are on the market for a affordable and quaint period home, then this could be the ideal property for you.
The cottage is beautifully presented and is ideal for first time buyers or investors.
Best of all, the house benefits from brand new internal fittings and a loft with plenty of storage space.
Moorland Road
Cost of house: £170,000
Estimated annual mortgage cost: £7776
Annual salary when mortgage is 30% of total: £25,920
This one bedroom home is in need of a new owner.
It was only listed for sale earlier this month and has plenty to offer.
Described as “light and spacious”, this property is in a popular residential area in York.
The living room was designed with comfort in mind, as it has a large window and also benefits from an electric fire.
Externally, the property benefits from a driveway for off-road parking.
Fossway
Cost of house: £175,000
Estimated annual mortgage cost: £8004
Annual salary when mortgage is 30% of total: £26,680
On the market for a three bedroom property?
This house is located close to local amenities and could be a great investment for first time buyers.
However, our estimations suggest you need to be earning at least £26,000 a year if your are paying for this house by yourself.
The lounge is a focal point of this property as it is a great size and is big enough to accommodate a dining area.
The rear garden is low maintenance but can be transformed into a gardener’s paradise if the right green fingered buyer came along.
Belfry Court, Wigginton
Cost of house: £179,950
Estimated annual mortgage cost: £8232
Annual salary when mortgage is 30% of total: £27,440
This might be the most expensive property on this list- but it is still over £105,000 cheaper than the average property in York.
This one bedroom house is best suited as a retirement apartment.
It has recently been redecorated, recarpeted and refurbished meaning it is ready to move straight into.
The lounge has to be the focal point of the property, as there is an electric fire in the centre of the room and it also benefits from a Juliet balcony.
The kitchen is fitted with a range of matching wall and base units, as well as integrated appliances.
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