Mortgage payments for first time buyers in Worcester takes up third of salary

Compiled by online mortgage broker Mojo Mortgages, the first Homes scheme affordability index looked at various factors affecting home affordability in 2021 including house prices, average annual salary and monthly take home pay to work out where in England was most and least affordable.

Based on the average monthly mortgage payment as a percentage of income, the average monthly mortgage repayment in Worcester now takes up 29.97 per cent of a couple’s take home pay - above the national average of 27.01 per cent.

This is based on an average property price in the city of £297,901 and an average annual salary of £27,802.

The figures have been released following the launch of the government’s First Homes scheme; designed to help first-time buyers and key workers onto the property ladder in their local areas that might otherwise have had to move to another city to afford their first home. 

Cassie Stephenson, director of mortgages at Mojo Mortgages, said: “While of course it’s important to remember the 30%+ discount will apply throughout the lifetime of the property and will apply when you eventually sell for the first time, a First Homes scheme property is still very much worth considering regardless of location as an option for first-time buyers looking to get onto the property ladder.

“The savings available - particularly allowing first-time buyers access to higher LTV mortgages through reduced deposits - could also mean better access to lower interest rates and improved overall savings across the lifetime of a mortgage. Plus of course, purchasing a home is a significant long term investment towards your financial future as opposed to lining a landlord’s pocket.

“We’re excited to see how this new scheme develops over the coming months as new properties and developments continue to crop up across England.”