That’s more than £110 a month below the average monthly payment for first-time buyers in England & Wales, according to the independent online mortgage service.
Its analysis looked at average house prices across metropolitan areas of England and Wales as a whole and is based on buyers with a 25% deposit and average best-buy mortgage rates.
While the average mortgage currently stands at £464, realpricecomparison.com found Oldham was the cheapest town for first time buyers. In Oldham the average house costs £91,051 meaning a monthly mortgage of just £353.
Other areas in the North West including Salford, Manchester and Bolton were found to offer excellent value with monthly mortgage payments at £374, £375 and £379 respectively.
London was unsurprisingly the most expensive city with the average monthly mortgage more than three times as expensive as in Oldham, coming in at £1,240.
Solihull was found to be the second most expensive area with repayments of £731. Showing the great variance of prices in the North West, Trafford and Stockport were also expensive areas with monthly mortgage payments of £694 and £549 respectively.
While the average first time buyer has a deposit of 25%**, for those with less saved for their first home purchase, mortgage costs are significantly higher.
With a deposit of 20 per cent, mortgage payments jump by almost £100 a month, coming in at £543 and this situation worsens the more the borrower requires. For those looking to buy with a fifteen and ten per cent deposit, average monthly repayments jump to £601 and £615 respectively.
Francis Ghiloni, commercial director at realpricecomparison.com, says: “First-time buyers in Oldham are paying the lowest monthly mortgage payments at an average of £353, although they still need to get a £22,753 deposit together to secure this rate. A number of urban areas in the North West offer fantastic value for first-time buyers.
“For those with smaller deposits, monthly mortgage rates increase quickly, potentially adding thousands of pounds a year to the cost of home ownership and this is before increased mortgage fees are factored in. Anyone looking to take a first step onto the property ladder should try and bide their time until they have a sufficient deposit to secure a best-but mortgage.”