Technology Has Given First-Time Buyers in Yorkshire a Foundation to Build On
Eight years – that’s how long you’ll have to save for if you want to buy your first home in Yorkshire. According to a recent study, lone buyers will need to save for almost a decade to build up the necessary 15% deposit required by most mortgage lenders. The survey itself took into account the average wage for ten regions across the UK and compared those figures to local house prices. Based on saving 22% of their monthly salary, a single person in Yorkshire would need eight years to hit their target.
Naturally, these figures are based on average wages. What’s more, the timeframe for those in the north is nowhere near as daunting as for those in the south. Unsurprisingly, someone looking to put a foot on the property ladder in London would have to stretch themselves for 15 years and nine months. However, even though Yorkshire might be more affordable than the South East, anyone in their 20s can, in theory, put the idea of owning their own home to the back of their mind until they hit 30.
Big Data Comparisons Make Equity Easier to Release
In days gone by, the only answer to the mortgage conundrum would be to save harder. However, in a world where technology has opened up new options, buying your first home doesn’t have to be as much of a struggle. Releasing equity from an existing property has never been easier for parents wanting to give their offspring a leg-up. In 2018, UK Finance found that remortgage rates were at a nine-year high. Helping to boost applications and, in turn, acceptance rates are comparison sites.
A case in point is Trussle, whose remortgage experts use online tech to match homeowners to deals. By creating detailed user profiles, Trussle can scan over 11,000 deals in order to find the most suitable mortgage products. The software not only makes applying easier, but it also improves acceptance rates by analysing big data to match applicants based on multiple eligibility points. By remortgaging, homeowners can unlock cash that they can then give to their children as a deposit.
Smart Saving is Now a Reality
Beyond mortgage comparison engines, money-saving apps are now all the rage. For many people, the biggest issue when it comes to saving is categorisation. Mobile products such as Monzo not only allow you to set budgets and restrict spending via other apps (think takeaways like Deliveroo), but they also help segment your money. Through a combination of alerts, spending charts and filters, you can save money more efficiently and reduce unnecessary spending. In essence, smartphones have made smart saving a reality.
Of course, even with the right technology, saving up the necessary funds for a deposit still won’t be easy. However, in a time when first-time buyers need a boost more than ever, it’s good to see that technology is on hand to help. Whether it’s helping parents help their children or savers help themselves, tech is giving aspiring homeowners a glimmer of hope.