Far out Friday: £9,000 house biggest bargain in Britain?

by NZ Adviser20 Nov 2015
The low price tag of a recently redecorated UK property (featuring new carpets) is in the running to be one of the cheapest family homes in Britain, the Daily Mail UK reports.

The lucky buyers who purchase with a 10% deposit will only need to pay less than £40 a month in mortgage bills, or may buy it in full since the asking price amounts to less than most buyers pay as a deposit.

Compare this to a 10 per cent deposit of £20,000 on an average property worth £200,000.

But it seems the cheap price presents its own problem as a mortgage of such a modest amount would be hard to obtain from a bank or building society.

Mortgage broker SPF Private Clients chief executive Mark Harris said, ‘Borrowers looking for such a modest mortgage may have to hunt around for a lender as some have minimum loan sizes such as The Post Office's £25,001 and HSBC's £10,000.

“However, there are lenders who will consider smaller loan sizes, such as Santander which will lend from £6,000 or Halifax which has no minimum requirement.”

Located near Manchester, sports a new family bathroom a fitted kitchen with a sink and a cooker and is occupied by a tenant and so could be an option for investors.

“The market will determine what a property is worth between a willing buyer and a willing seller,” said Harris.

“In London it's more than £500,000 on average but that's because active buyers have access to large amounts of money to compete for a finite number of homes.

“Property prices are not based on simple supply and demand however, but on the availability (or otherwise) of credit. Thirty year mortgages coupled by 3 per cent interest rates mean people who want to buy can borrow more. Building a million more homes is unlikely to make them cheaper or more affordable since real demand exceeds supply by a factor of ten in those areas where house price inflation is galloping away.”

COMMENTS

Most Read

NZ Adviser TV