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People across the UK are buying their first home later in life – and Bolton’s houses are becoming less affordable . So, how much should you save to buy a house by 35? Keys by 35 looked at data from the HM Land Registry to find out how much you need to save per month to make a deposit on your first home in Bolton by 35. Houses in the borough cost an average of nearly £194,000 now , four per cent more than they did last year - according to the Office of National Statistics.
But if you’re 18, they will probably jump to £216,586 by the time you’re 35, according to Keys by 35’s study. And the deposit on your first home will likely set you back over £43,000. That means you should save £212 a month starting now.
James Chaney, principal broker at Skylight Mortgages said: “Although you can get a mortgage with as little as a five per cent deposit, a larger deposit will lead to lower interest rates on your mortgage. “Twenty per cent is the average deposit. It’s a healthy balance between affordability and keeping your interest payments as low as possible.
“While putting away £212 every month from 18 might seem impossible, it's worth bearing in mind that buying with a partner halves these figures as you can share them. “You don’t have to share the deposit equally either. “But if you contribute different amounts to the deposit (and subsequent mortgage), you should consider 'tenants in common' arrangement to make sure your equity in your home reflects how much you contributed.
“The UK government has a First Homes scheme which lets you buy a new home for 30 per cent off its market value, as long as you earn under £80,000 a year and the home is worth less than £250,000. “They also offer a Rent to Buy scheme where you can get 20 per cent off your rent for two years to help you save up for a deposit. “But the owner or developer has to have has agreed to take part, so ask your estate or letting agent if they have any properties covered by the schemes.
” Nowadays, a typical first-time buyer in Britain faces paying a mortgage of £940 per month, compared with £590 per month five years ago, according to calculations by Rightmove. But monthly mortgage payments are still £155 lower than a peak seen in July 2023, according to the website. (Image: Keys by 35) How much do you need to save to buy a first home in Bolton by 35? Infogram.
