During your commute or trip to London, have you ever wondered how much it would cost to own a home near one of the city’s underground stations? Well now you don’t have to…
Unlike the tube, the details of how much buyers will have to fork out when purchasing a property across the London Underground network, and which line is home to the largest market gap between the most and least affordable stations, no longer remains hidden thanks to research from Alexander Hall – an award-winning mortgage adviser.
To conduct the research, experts analyse the current cost of a mortgage across every station in the capital city, including the Elizabeth Line and DLR. They looked at the average house price in each station postcode, minus a 15% deposit to work out how much monthly repayments would be.
Equally, researchers also based a two-year fixed rate mortgage with a loan to value of 85% and a rate of 4.77% to work out their findings.
According to the findings, the highest monthly mortgage repayment is based in High Street Kensington which costs around £9,890 per month. In contrast, Heathrow is the most affordable with an average monthly repayment of £1,316.
What’s more, the Waterloo and City line take the lead when it comes to the highest average monthly mortgage payment across all network lines. On average, it comes out at £5,632 per month. Though the DLR ranks as the most affordable with an average cost of £2,610 per month – ever so slightly beating the Elizabeth line which stands at £2,620.
Overall, the District line has the largest mortgage market gap between the most and least affordable station. The research shows there’s a difference of £8,248 per month between the average monthly mortgage payment in High Kensington (9,890) and Upney (£1,642).
Commenting on the findings, Stephanie Daley, director of partnerships at Alexander Hall, said they don’t come as much of a surprise given property values in the capital city have been ‘holding steady’.
‘London property values have been holding steady over the past year and we know the capital remains home to the strongest housing market with respect to the price commanded for bricks and mortar,’ she said. ‘This is particularly evident when looking at the average monthly mortgage payment required, with this cost hitting almost £10,000 across the most prestigious pockets of the London property market.’
‘However, one weapon in the arsenal of London homebuyers is the capital’s outstanding transport links and the London Underground, in particular,’ Stephanie continued.
‘As our research shows, you can dramatically reduce the cost of your mortgage by looking further along the tube line that runs through your ideal destination. Whilst you may not want to adjust your expectations from High Street Kensington to Barking, you may well find that even a stop or two can help to cut the cost required to climb the London ladder.’
A full breakdown of the findings from Alexander Hall can be accessed here.
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