Difference in property ownership across the country
Focusing on a selection of areas across the country, our data scientists have compiled mortgage payoff schedules for various mortgage types and interest rate types in order to highlight how much of your home you actually own over the term.
By the end of the fifth year after buying your home, the difference in percentage of property owned across the UK is as wide as 20 percentage points
In Leeds, the average homeowner owns only 41% of their property by the end of year five, compared to a much higher 61% owned in Edinburgh. Though this can largely be attributed to higher average property prices, £192,823 and £335,317 respectively.
Would you rather a master bedroom and a living room or a kitchen and two bathrooms?
Considering all of our research into room sizes, room costs and percentage of a property owned, we can estimate exactly what you own within your home over time.
Sticking with the “end of year five” timing, the difference between Leeds and Edinburgh becomes all the more real. In Leeds, you will own the master bedroom, a bathroom and only half the living room. This is in contrast to the master bedroom, the living room and the kitchen all owned for a home in Edinburgh.
If we then follow the full mortgage term for a selection of locations, we clearly see how ownership unfolds over time.
How we’ve worked it out
A note on the calculations and data we’ve gathered:
- Average house prices for various locations across the UK according to house price valuations entered by visitors to the MoneySuperMarket mortgages page - remortgages data has been removed to prevent skewing the data
- 1 Average UK house size in square metres is 67.82m2, according to LABC Warranty (March 2018)
- Average house price per location divided by average UK house size (67.82) provides average cost per square metre
- Average UK room sizes in square metres is also provided by LABC Warranty (March 2018)
- Average cost per square metre multiplied by average UK room sizes provides average room costs for master bedroom, secondary bedroom, third bedroom, bathroom, living room and kitchen
- Average deposit amount per location is calculated by subtracting the average borrowed amount from the average property valuation, all from anonymised MoneySuperMarket user data
To calculate how payments change over the duration of a mortgage, typical interest rates for each location have been assumed based on data comprising of discounted variable, fixed and variable interest rate types across three different mortgage types; buy-to-let, first time buyer and house purchase.
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