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Mortgage Brokers in Birmingham

Interested in buying a property in Birmingham but not sure where to start? Get expert advice and access to the best deals with an independent mortgage broker

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Pete Mugleston

Author: Pete Mugleston - Mortgage Advisor, MD

Updated: August 13, 2021

The expert brokers we work with have arranged mortgages for customers buying a property in Sutton Coldfield, Perry Barr, Erdington, Hodge Hill, Yardley, Hall Green, Selly Oak, Northfield, Edgbaston and Ladywood.

In this guide, we highlight the best reasons to buy property in Birmingham, take a closer look at the booming housing market, and why working with a mortgage broker could potentially save you a lot of time, money and hassle.

Why buy property in Birmingham?

Dubbed ‘Britain’s second city’, Birmingham is a city that’s filled with diverse places to live and fantastic career opportunities. If you’re interested in buying property in Birmingham, here are just some of the reasons why it could be a smart move:

  • Central location Birmingham is positioned centrally in the country, with 90% of the population able to access the city within four hours, making it an ideal location if you need to travel for pleasure or work. And, if you need to commute to London, it can take as little as 1 hour 24 minutes from Birmingham New Street to Euston Station in London. Plus, once the construction of the HS2 is complete, it’s likely that many more people will move to Birmingham and commute to London, striking a balance between more affordable housing and more work opportunities.
  • Affordable housing The average cost of a property in Birmingham’s city centre is just £191,031, which isn’t that much in comparison to central London, where the average property is sold for £1,455,204. The city’s affordable housing has been a big driving factor for many to up and move there, and the demand for rental property is also high.
  • Cultural scene Birmingham has many attractive features to attract new home seekers and current residents alike with lively music venues, vibrant food offerings, more Michelin Star restaurants than any other UK city, plus it’s also the home of Cadbury World – what more could you ask for?
  • Booming business sector  In terms of economic growth, Birmingham has gone from strength to strength since the financial crash. The gross value added (GVA) measures the contribution that each individual producer, industry or sector adds to the UK economy, and Birmingham’s economic output has risen by 3.6%. This has resulted in the GVA totalling to over £985 million, according to the Birmingham City Council Q3 Update.
  • Job opportunities There are plenty of opportunities for workers to grow their careers in Birmingham with over 4.3million people of working age living within 1-hour of the centre, and this number only looks set to grow. Plus, 42% of people fall into ethnic groups other than white, making it one of the most ethnically diverse cities in the UK.
  • Prospective rental yields Birmingham is considered one of the best cities to buy rental property, largely due to the large number of young professionals who all work in the city, plus its reasonable house prices. In 2020, the average rental yields in Birmingham come out at 5%, which outperforms the national average of 4%, even in the south of the UK.

Most in-demand areas

The following areas are amongst the most popular areas to buy in Birmingham, along with the average property price in that area:

  • Digbeth: Less than ten minutes away from the Bullring, properties in the bohemian and trendy Digbeth go for around £194,735.
  • Erdington: Properties in this suburb sell for approximately £161,360.
  • Edgbaston: Home to international cricket, properties here will set you back around £321,725.
  • Harborne: Three miles away from the city centre is Harborne, where properties fetch for around £357,657.
  • Holloway Head: Flats sold for around £88,593, while terraced houses went for £235,183.
  • Jewellery Quarter: This area of Birmingham is an industry hub and ‘national treasure’ with over 100 independent stores. Properties average around £191,031.

Average property prices in Birmingham

As of March 2020, the average property price in Birmingham is £215,594 – this is a rise of 2.09% since December 2019, and a rise of 6.40% over a year. With these promising figures, it’s likely that property prices in Birmingham will continue to rise, therefore purchasing one could become an even greater investment.

To break down the average price of property by property type, flats on average sold for £138,648, semi-detached houses fetched £216,455, detached houses went on average for £373,394 and terraced houses sold for around £170,971.

These are average property prices in Birmingham as a whole, however, the prices will vary depending on which area you choose to buy property in.

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Average deposit required

In Birmingham, the average deposit amount for first-time buyers averages out to £26,882 which, if they were purchasing a home at the average price of £215,594, would make their deposit around 12.5% of its total value, meaning that you would need to take out a loan worth 87.5% of the property’s value.

However, it’s important to note that this price won’t be reflective for everyone, as many other factors will affect how much you need in total. Mortgage lenders will base their decision to lend depending on how well you meet their affordability and eligibility criteria including your income, job type, and credit rating.

Do I need to find a mortgage broker near me?

Not necessarily. While you may think that brokers who work in the area you’re looking to buy will be your best bet, you shouldn’t feel obliged to go with a broker just because they’re geographically close to you. Because it’s likely that you’ll never meet your broker face-to-face and work together via email and phone calls instead, you could be missing out on some great deals for your circumstances.

This is why you’re likely better off working with an experienced whole-of-market mortgage broker, like those we work with. With access to mortgage providers and products across the entire UK, a whole-of-market broker can assess every part of your application to find your perfect mortgage match, giving you far more options than if you’d searched alone.

A good broker will consider not just which mortgage is best priced for you, but also which lenders are likely to underwrite your loan and who to bypass to save time on a wasted application. They will always be honest and transparent about your prospects.

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About the author

Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!

Read more about Pete

Pete Mugleston

Mortgage Advisor, MD

FCA disclaimer

*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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