● Research reveals one in three York homeowners is unaware of their mortgage terms
● Study highlights a lack of local understanding of property prices
New research released today by Zoopla, the UK’s most comprehensive property destination, reveals that almost one in three (31%) York homeowners doesn’t know what the interest rate is on their mortgage. This is despite a mortgage being the most significant financial commitment most people will make in their lifetime.
Mortgage oblivion
The research[1], which quizzed 200 York residents about the city’s property market, also found that one in ten (16%) homeowners doesn’t know how many years they have left on their current mortgage deal.
Zoopla’s research also reveals that three quarters (75%) of homeowners in York are currently looking for a new home, meaning now is an important time for the people of York to brush up on property knowledge. To help homeowners get a better understanding of payments, properties and percentages, Zoopla has created some top tips:
● Research what your current property is valued at using Zoopla’s free online home valuation tool as this will tell you whether your property has risen in value.
● Evaluate your monthly debts to prioritise repayments. Home mortgage rates are usually lower than interest rates on other forms of debt, such as credit cards. It could be worth using extra funds to pay down other commitments rather than overpaying on a mortgage.
● Keep a close eye on your interest rate if you have an adjustable-rate mortgage, as after the fixed period ends, rates will fluctuate. It’s important to know how rates can adjust each year as you don’t want to be caught out by any changes in your monthly payments, especially large increases.
The price is right
The research also questioned homeowners on knowledge of their own property value, as well as average property prices in the city. The results show that while knowledge of average local property prices is high, some homeowners are in the dark about their own property’s value.
Over half (54%) the respondents correctly placed the average price of a property in York at more than £250,000. The current average property price in York is £258,400, up 4% from January 2020.
However, the survey found a third (33%) of homeowners are unaware of the value of their own property.
Space is top of the agenda
The research also highlights York homeowners’ desire for more space, as more than a quarter (28%) are looking for a larger home or a home with a specific feature like a garden or garage.
The need for space is further illustrated by data from Zoopla in early 2021 that revealed demand for extra family living spaces increased with searches for ‘gardens’ topping the list of Zoopla search terms for buyers in York in 2020.
Eco Living
The survey also asked York homeowners about their green credentials and found almost all (90%) of the respondents said the efficiency of their home is important to them.
Almost two fifths (39%) said they are keen to be as environmentally friendly as possible and over half (51%) said saving money is the main motivation behind going green.
While homeowners in York are environmentally conscious, Zoopla’s research found more than two in five (43%) homeowners aren’t aware of the government’s Green Homes Grant and three quarters (76%) don’t know how much the grant is worth.
Under the Government’s Green Homes Grant, homeowners are entitled to claim up to two-thirds of the bill for certain types of work undertaken to improve their property’s energy efficiency, up to a maximum spend of £5,000.
The scheme will also see the Government foot the bill for low-income households, up to a maximum spend of £10,000. Data from Zoopla shows that 200,000 homes in England alone have an EPC rating of G, the lowest score on the energy efficiency scale. This shows the need for homeowners to improve efficiency and reduce costs.
In addition to cost savings, investing in energy efficient changes could improve mortgage rates. Green mortgages are available with some lenders, offering discounts on the usual interest rate if you buy a home with a better EPC rating.
Knowledge is key
Tom Parker, Consumer Spokesperson at Zoopla comments: “Homeowners in York could be missing crucial savings on their next big move by not understanding their current mortgage deal, interest rates or local property prices. By setting aside some time to brush up on property knowledge, homeowners can shop around and make sure they are getting the best deal.”
Ben Hudson, Managing Director at Hudson Moody, an award-winning estate agency in York, added: “Mortgages, house prices and interest rates can be confusing for homeowners, but being in the know about your own situation can really make a difference when it’s time to move or improve. Luckily for local homeowners, there’s a lot of free help and tips available, like the tools on Zoopla, to help build knowledge and answer tricky questions.”
For inspiration for your next move, here are some of York’s best listings.
3 bed property for sale
Bootham Green, York YO30
Price: £395,000
2 bed property for sale
Thorpe Street, York YO23
Price: £375,000
4 bed semi-detached house for sale
Lawnswood Drive, York YO30
Price: £350,000
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For further information, please contact the Zoopla team at Clearbox: zoopla@clearboxcommunications.com / 02895 622600.
Notes to editors
About Zoopla
The Zoopla Limited property division includes some of the UK’s leading property portal, software, marketing and data insights brands that help property professionals market their properties, promote their brand, make informed decisions and manage their business efficiently. Our websites and apps attract over 58 million visits per month and over 25,000 business partners use our range of services.
● Zoopla is the UK’s most comprehensive property destination, helping consumers research the market and find their next home by combining hundreds of thousands of property listings with market data and local information.
● PrimeLocation is one of the UK’s leading property websites, helping house-hunters in the middle / upper tiers of the market to find their dream home from the top estate and letting agents and property developers.
● SmartNewHomes is the UK’s leading website dedicated exclusively to new builds, helping buyers understand the market and search for new build homes from all the leading property developers across the country.
● Hometrack and Calcasa are leading providers of automated property valuations and statistical property market insights in the UK and the Netherlands to partners including mortgage lenders, developers, investors, government agencies, housing associations and others.
● Alto, Jupix and Expert Agent are some of the leading cloud-based estate agency and property management software systems used by thousands of property professionals across the UK for the day-to-day management of inventory, marketing and communications.
● PropertyFile is used by estate agents to improve communication and efficiency with their customers.
● TechnicWeb specialises in designing, developing, hosting and operating fully-responsive websites for the property sector.
