SmartNewHomes

The house builder's Equinox development could be a great option for first time buyers.

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  • It is cheaper for first time buyers to purchase a one bedroom apartment in Crayford, south east London, than it is to rent a similar property, research shows.

    A study by Fairview New Homes has found that one bedroom properties at its Equinox development in Crayford are commanding rents between £725 and £750 per month, while those who are able to raise a 20 per cent deposit can buy a brand new home with a monthly mortgage commitment of only £521.

    Rents in Crayford have continued to increase. National trends and figures from estate agent group LSL Property Services have shown that national rents have risen by 2.9 per cent in the last year.

    The average rent paid by private tenants in England and Wales soared to £725 in July, with this figure rising to £1,057 for those living in London.

    With this in mind, the prospect of buying a property has become more appealing for many and apartments at Equinox are available through the Government's mortgage guarantee scheme NewBuy.

    The initiative aims to help people overcome the deposit gap that many new homebuyers are up against, with those who meet the criteria able to benefit from a 90 to 95 per cent loan-to-value mortgage.

    Equinox is one of the first developments in Britain to offer NewBuy funding through a "challenger" bank, with Aldermore offering mortgages of up to 95 per cent loan-to-value along with an annual percentage rate of 5.48 per cent.

    In this case, repayments would stand at £736 per month, with one bedroom apartments at the site available to buy from £124,995. Thanks to the NewBuy scheme, buyers will require just £6,250 for their deposit.

    The development is only 30 minutes from London Bridge, making it ideal for central London workers who want to live away from the hectic city.

    Apartments at Equinox are priced at £124,995, meaning that the cost per square foot is £269.  This means the development offers less then half the average price per square foot for a home in south east London, according to agent JLL.

    Some information contained herein may have changed since it was first published. SmartNewHomes strongly advises you to seek current legal and/or financial advice from a qualified professional. 

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