When buying a new home, you’ll often hear that the three key things to consider are, “location, location, location” and that certainly seems to be the case when it comes to school catchment areas, according to new research from mortgage lender Santander.
In a recent survey of over 2,000 adults, Santander has found that school catchment areas are more important than ever for homebuyers - over a third of prospective homebuyers with children 10 years or under, said that moving into the catchment area of a good school is their top priority. In fact, many of these people would be willing to pay over £12,000 extra to be able to secure a home in one of these areas.
The average premium people would be willing to pay to live near a good school was £5,663, but this amount varied throughout the UK, depending on the competitiveness of the area and local property values. People in the South-East of England for example would be willing to pay £10,961 more.
If you’re buying a new home and choosing a location based on a particular catchment area, it’s important to bear in mind the extra cost you’re willing to pay to live there. Whilst you may be saving money by not having to pay high school fees, you may need to take out a larger mortgage and that will mean higher monthly repayments.
Also, taking out a larger mortgage could increase your Loan To Value (i.e. how much you're borrowing as a percentage of the property value) and this could result in you having to pay a higher mortgage rate.
Make sure you research your preferred areas well as see how the different property prices affect your budget and the mortgage you need.