Houses in market towns have higher mortgages
01 December 2010
New research by Lloyds TSB has found that the average cost of a house in a traditional market town in the UK is £231,163. This is equivalent to 7.1 times average annual earnings.
It was also found that 69 per cent of market towns were more expensive to buy a property in than their county equivalents.
The most expensive market town is Beaconsfield with house prices exceeding £700,000.
In another 18 market towns, house prices are above £300,000, with the majority of these towns being in the south of England.
Only ten market towns have property that cost less than £150,000 and three of the most inexpensive are in County Durham.
Martin Ellis at the bank, said: "Homes in market towns command a significant premium over their neighbouring towns with the quality of life benefits often associated with living in such locations still proving popular among homebuyers.
"Market towns are often particularly attractive for those looking to move into more idyllic surroundings without sacrificing many of the important amenities they currently enjoy."
Those who wish to buy a property in one of these towns may like to consider their mortgage options as they all have advantages and disadvantages.
They can compare the different types currently on the market by using a price comparison site such as moneyexpert.com.
A popular option could be a fixed mortgage as first direct predicts that more homebuyers will choose this option in 2011.
This type of mortgage could be beneficial if the Bank of England Base Rate (BEBR) is increased next year.
That is because the interest charged on variable mortgages is based on the BEBR, meaning that repayments will increase.
However, the repayments on a fixed mortgage remain the same for a set period of time, usually about two years, meaning they will not be affected by any changes in the BEBR.