Low interest rates help
ESPC says first-time buyers ‘not excluded’
ESPC, which operates in east central Scotland, has found that a third (30.8%) of properties currently on the market in the area are one and two bedroom flats, which are the most affordable and popular to buy for first time buyers.
Yet some analysis has alleged that first time buyers will not be able to purchase their first home without having at least £20,000 to £40,000 available as a deposit.
ESPC has found that most mortgage lenders offer 5% deposits, with average property prices for one bedroom flats in some areas of Edinburgh around £114,000.
Peter McGregor of ESPC Mortgages says: “Due to low interest rates and a competitive lending market, subject to meeting lending criteria, a purchase of a property with a £150,000 valuation would only require a deposit of £7,500.
“Likewise a purchase of a property with a valuation of £120,000 would only require a deposit of £6,000. With a bit of determination and hard saving these sums are achievable.”
The agency’s latest House Price Report has also revealed that areas such as Leith, Bonnington and Easter Road are still popular places for first time buyers, but Gorgie, Dalry, Shandon and Polwarth have taken over as the most popular place for first time buyers, with prices rising due to demand.
The average price of a one bedroom flat in Leith Walk and Easter Road is £121,000, and in Dalry and Gorgie it’s £114,085.
Paul Demarco of ESPC Mortgages says there are ways for buyers to improve their credit score. by making sure they do not miss any payments or are late on anything like credit cards.
” Open up a credit card and use it, but always pay off as much as you can and leave minimal debt on it,” he says.