A survey of new home owners and potential first time buyers by Clydesdale and Yorkshire Banks shows that 32% believe it makes more financial sense to buy their own property.
It also found that 19% think it works out cheaper than renting and 23% of new and aspiring home owners also believe buying is an investment for the future.
But the research reveals different attitudes across the UK. Those in the south east are the most focused on their finances with 42% agreeing that it makes financial sense compared to just 25% in the east of the country.
Meanwhile a third of those surveyed in the Midlands said they believed it was an investment for the future, compared to just 9% of respondents in Wales. The Welsh, however, revealed that it’s the idea of home ownership which appeals to them with 36% admitting they are looking to buy a home simply because they want to be a home owner. This compares to just 8% of those in London and only 9% of those in Scotland.
More than half of those surveyed, some 56%, said they rented a property before buying their first home, although 7% admitted they had to give up their rented property and move back in with parents or a friend or family member in order to save for a deposit.
In the north west 70% of respondents rented before buying their first home. In Wales 36% said they stayed with their parents or a family member before buying.
‘We understand how difficult it can be to take the first step onto the property ladder and are one of the few lenders still offering 95% mortgages to support first time buyers,’ said Andrew Pearce, retail director for Clydesdale Bank.
‘We remain committed to helping people buy their first home and are there to guide and support them through the whole process,’ he added.
Clydesdale and Yorkshire Banks have a range of mortgages for first time buyers including a 90% LTV rate of 5.99% and a 95% LTV rate of 6.49%, both fixed for three years with no arrangement fees.
Claire Hall, aged29, recently took her first step onto the property ladder with a Clydesdale Bank First Time Buyer 90% LTV mortgage with no arrangement fee.
Claire works in the regional sales team of logistics firm, The DX Group and having rented for 10 years and saved for a deposit for five years, she purchased a traditional style 1980’s two bedroom flat on Hillside Street in Edinburgh for £118,000.
Not only does Claire estimate she will save between £100 and £250 on her mortgage in comparison to rent each month, but she also feels that she has an investment for the future.
