First-time buyers only need to borrow 2.7 times their salary to get on the property ladder in Durham, new figures show.
The city ranks among the country’s most affordable locations, according to online mortgage broker Mojo Mortgages.
Homes in Durham typically command a price tag of around £176,834, compared to the national average of £287,830.
With residents typically earning £27,859 a year, a couple who’d saved a 15 per cent deposit would have to borrow 2.70 times their salary for a mid-market home.
In contrast, buyers in Bath or London would need to borrow seven-and-half or seven times their salary respectively to secure their first home.
Mojo compared average earnings with house prices and found that 70 towns and cities in the UK were below the traditional 4.5 salary multiplier applied to borrowers.
Richard Hayes, CEO and co-founder at Mojo Mortgages said cities like Durham have plenty to tempt first-time buyers. He said: “Our research shows that buyers can still enjoy the buzz of a big city, without paying a premium and over-stretching their household finances.
“While London and the South-East have always been a draw for people looking to further their career, the rise in remote and hybrid working due to the pandemic means many office-based workers now have more choice and flexibility in where they live.
“It’s certainly possible for some first-time buyers to now borrow up to seven times their salary, but it’s also worth considering whether a location like Durham would offer better value.”
The full research can be found here: https://mojomortgages.com/mortgage-income-multiples-the-cost-of-borrowing-in-2022