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First-time homebuyers could save more than 짙500 a year as mortgage rates fall

London savers could save up to 짙1,000 if the Bank of England base rate falls further

HOUSING experts predict Brit first-time buyers could end up paying nearly 짙500혻less a year on their mortgages following post-Brexit interest rate cuts.

Youngsters hoping to get a foot on the property ladder were boosted by news that the Bank of England base rate was being cut to 0.25 per cent last month.

First-time buyers have been boosted by the Bank of England cut to the base rate following the Brexit vote. Most could end up saving nearly 짙250 a year
First-time buyers have been boosted by the Bank of England’s base rate cut following the Brexit vote. Most could end up saving nearly 짙250 a year
20 Second Story: House prices rise across the UK

And property forecasters believe that, if the cut is fully passed onto customers by lenders, it could mean an average saving of 짙244-a-year around the country.

In London, that amount would be even greater - a whopping 짙518.

Luxury estate agents Hamptons commissioned the study that looked into the ability of young Brits to break onto the housing market.

They even predicted things could get better for first-time buyers, with the Bank of England believed to be considered cutting the base rate even further.

If the Bank's rate was brought down to zero per cent, home owners could expect an average rate of 1.9 per cent.

That would see Brits save an average of 짙484, with that rising to more than 짙1,000 a year in London.

Wannabe homeowners are still faced with the challenging prospect of raising a deposit.

Mark Carney
PA:Press Association
Bank of England Governor Mark Carney has overseen the base rate drop to 0.5 per cent - with rumours it could drop yet more
Bank of England's Brexit warning

With the average home now costing more than 짙200,000, first-time buyers would still need to raise more than 짙32,000 to meet a 15 per cent deposit.

Experts say that should take the average couple around five-and-a-half years, while a single buyer would need more than TEN혻- rising to 14 in the capital.

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