Mortgage broker London

*The £357 average savings are based on Mojo mortgages residential remortgage sales data only compared to the average SVR (Standard Variable Rate) in January 2024. Actual savings will depend on individual circumstances

Getting a mortgage in London

London is the most expensive area of the UK, so it’s important to understand the additional considerations you may need to make when buying there. For example, due to the high property prices, deposit requirements tend to be larger. 

Even though the percentage of the asking price you’ll need to save for a deposit is typically the same, higher asking prices can make the actual amount much higher. 

For example: 

The maximum loan to value (LTV) available from most lenders is 95%, meaning you’ll need a 5% deposit

For the UK national average property (£264,400*) - 5% deposit is = £13,220

For an average property in London (£536,800*) - 5% deposit currently = £26,840

*based on January 2024 Zoopla house price index

Often people looking to buy in London will, therefore, need to use a home ownership scheme of some type to help them get onto the property ladder.

How far will my money go when buying property in London? 

This will be largely dependent on which area of London you plan to buy in, as prices can vary a lot by different areas. For example, a one bedroom property in Covent Garden could be much more expensive than a detached house in North West London.

Typically the closer to the centre of London you are, the higher the cost. But even Central London has its higher priced areas, like Leicester Square, and lower cost areas, such as Aldgate. 

North London

North London offers large homes and plenty of green space, so tends to attract professionals and families. There are higher cost areas of this region, such as St John’s Wood and Hampstead, but more affordable homes can be found in the Hyde and Hendon areas.

West London

What you can get for your money, again, varies a lot depending on the area of West London you choose. Kensington is one of the highest priced areas in the region, but there are much more affordable options available within West London, such as Hanwell.

South London

South London can be very expensive, especially in the luxury South West areas. But the South East is generally much more affordable - in fact, it’s one of the cheapest areas to buy in the capital and therefore popular with first-time buyers. Areas like Dulwich and Thamesmead offer much more affordable options for those looking to move to the south region of London.

East London

This region of London has become increasingly popular in recent years. Dalston and Hackney offer attractive options for those looking for lots of amenities nearby, that's also more affordable than other parts of London. This can make it an attractive option for buy-to-let landlords looking for rental properties.