Mortgage Advice in Liverpool for First Time Buyers

Buying a home is one of the most daunting, yet important financial commitments of your life. This is even more the case when you add a mortgage into the mix. You need to ensure you are prepared before you go forward with a mortgage in Liverpool, a large factor being how much deposit you have.

Deposit amounts, purchase prices and loan-to-value percentages for first-time buyers can change depending on the individual and their circumstances.

Recently, Liverpoolmoneyman undertook a study on first time buyers in Liverpool and what the averages are for these variables. Below is a closer look at the information found from this study.

Average Deposit Amount 

Usually higher house prices will lead to a higher deposit contribution. This in turn, allows the home buyer to receive better rates for the amount they are interested in borrowing.

When analysing house prices in the rest of the North West, the average deposit is more or less the same across both major regions. Results from the study showed that the average first-time buyer deposit amount in Liverpool is around the £27,000 mark, 17% of the average purchase price.

We often see that applicants receive a helping hand either family or friends, using what is known as a gifted deposit. This comes in handy, as it can give an applicant that extra boost that they need to make an offer, utilising this gift, sometimes in conjunction with their own savings.

Sometimes this will allow an applicant to access a lower loan-to-value panel where they will be able to get more competitive deals and lower rates of interest. 

Average Purchase Price

As mentioned previously, house prices and deposit amount are usually around the same margin across the North West of England. According to the results we found, the average purchase price for first time buyers in Liverpool is £159,000 which is only 5% less than other nearby areas such as Manchester.

Average Loan-To-Value (LTV) 

You can work out your loan-to-value percentage by diving the mortgage amount by the property price and then multiplying by 100.

The lower the loan-to-value, the more likely you are to open yourself up to better rates. Looking back on the aforementioned data, the average loan-to-value in Liverpool comes in at around 83%. This is only 1% less than other areas in the North West.

Are you a First Time Buyer in Liverpool? 

As a city often seen as a national business hub, as well as a prime leisure and tourism spot, Liverpool could be an ideal spot for prospecting first time buyers in Liverpool. With that in mind, you may benefit from getting in touch with a mortgage broker in Liverpool.

Once you have spoken with a mortgage advisor in Liverpool, you can get the ball rolling with a mortgage agreement in principle to put you in a good place for making offers on properties.

This data is taken from Liverpoolmoneyman’s collected statistics on first time buyers in Liverpool and Merseyside. 

Date Last Edited: August 18, 2023