First-time buyers borrow more in south

There is a north-south divide in the UK, with southerners paying more to get on the housing ladder than their northern cousins, according to one mortgage lender.

Research from Abbey shows southerners borrow an average of £128,370 to make a step on the housing ladder, some 31 per cent more than northerners who pay £89,189.

Ten years ago, the difference between the two sides of the country was only eight per cent, with those in the south loaning £32,927 to the northerners’ £30,522.

The UK’s capital appears to be the most expensive location on which to make a first step on the property ladder – the average Londoner borrows £186,025, 30 per cent more than buyers in the north-west.

"It’s extremely interesting to see that, even though the housing ladder price difference between the north and south is now more of a gulf than a gap, it has done little to upset the demand for first homes in the south," said Nici Audhlam-Gardnier, head of mortgages at Abbey.

He explained: "Perhaps it shows that people in the south want to buy now – expecting prices to continue rising at a rapid rate, whereas buyers in the north feel they have less to gain in jumping on the property ladder."