NEW research has revealed that Bradford is the most affordable city in England for first-time buyers to purchase their first home.

The figures have been released alongside the launch of the Government’s new First Homes scheme.

They reveal that in Bradford the average monthly mortgage repayment takes up 14.3 per cent of a couple’s take home pay, making it the most affordable location in the country.

Online mortgage broker Mojo Mortgages has crunched the numbers on the new scheme, alongside house prices and average salaries to work out the most and least affordable areas of the country.

The Government’s First Homes scheme was launched earlier this month and is designed to help first-time buyers (and key workers) onto the property ladder in their local areas, when they may have had to move to another city to afford their first home.

First Home properties are priced at 30 per cent under original market value to make them more affordable, with prices capped at £250,000. First time buyers are warned however that the discount applies for the lifetime of the property, so will also apply if they choose to sell in the future.

In Bradford, with average property prices at just under £146,000 and average salaries of £28,790, the city is the most affordable location.

It is followed by Blackpool – where mortgage repayments are 15.9 per cent of average monthly take home pay, and then by Stoke-on-Trent where the figure is 17.4 per cent, and Sunderland where the figure is 17.6 per cent. The top ten list was made up entirely of northern towns and cities.

At the other end of the scale, the south dominates the least affordable list. Oxford is the least affordable place, with monthly mortgage repayments make up 49.4 per cent of take-home pay.

The university city is followed by Bath where the figure is 47.7 per cent, and London where the amount is 47.1 per cent.

First time buyers are told to consider how mortgage repayments fit into their monthly budgets.

Nisha Vaidya, mortgage expert at money.co.uk, said: “A home is one of the largest purchases you’ll make and it can be difficult to understand how much you can afford.

“There are many factors, like your salary, regular outgoings, and debt-to-income ratio that will impact whether a home is within your reach.

“A good rule of thumb is to allocate no more than 35 per cent of your gross income to your monthly mortgage repayments.

“Any more than this and you could become ‘house poor’, where you own a house, but lack the funds to do other important things such as saving money or going on holiday.”

Cassie Stephenson, director of mortgages at Mojo Mortgages, added: “While of course it’s important to remember the 30-plus per cent discount will apply throughout the lifetime of the property and will apply when you eventually sell for the first time, a First Homes scheme property is still very much worth considering regardless of location as an option for first-time buyers looking to get onto the property ladder.

“The savings available - particularly allowing first-time buyers access to higher LTV mortgages through reduced deposits - could also mean better access to lower interest rates and improved overall savings across the lifetime of a mortgage.

“Plus of course, purchasing a home is a significant long-term investment towards your financial future as opposed to lining a landlord’s pocket.

“We’re excited to see how this new scheme develops over the coming months as new properties and developments continue to crop up across England.”