The salary needed to buy Newport’s cheapest properties

Luckily, the area is home to plenty of affordable houses which are ideal for investors and first time buyers.

We have already looked at the average salary you need to afford the most expensive homes in the area- now it’s time to look at properties on the other end of the price spectrum.

It's important to note that there are many factors that impact the cost of a mortgage and lenders assess affordability on a case by case basis- salary isn’t the only deciding factor.

Tom Newcombe, mortgages spokesperson for MoneySuperMarket said: “Affordability depends a lot on a customer’s outgoings as well as income, but in general lenders will hardly ever lend above five times your income- for most people, four and a half times will be the limit.”

Tom added that “the general rule is that you shouldn’t spend more than 30% of your monthly income on a mortgage” if you want to pay the bills and still live comfortably- but this does depend on the customer’s circumstance.

Overall, Mr Newcombe explained that you should ”weigh up your personal circumstances only commit to paying what you can comfortably afford.”

How we did the maths

Our estimations are based off the MoneySuperMarket recommendation that your mortgage should only take up 30 per cent of your total annual income- that’s if you still want money for the nicer things in life.  

Based on this, the figures are estimates based on a 2 per cent interest rate, 10 per cent deposit and a 25 year repayment term.

With that being said, here are some of the cheapest houses for sale in Newport- and the estimated salary you would need in order to buy them.

Chepstow Road, Maindee
Cost of property: £74,950
Estimated annual mortgage cost: £3,420
Annual salary when mortgage is 30% of total: £11,400

This shop can be converted into a home (Photo: Zoopla)

Right now, this is one of the most affordable houses in Newport.

According to our calculations, you will only need to earn £11,400 per year in order to live here comfortably.

However, before you place an offer be prepared to make a significant investment as this property requires a lot of modernisation and renovations.

It is currently an end terraced shop that needs to be converted into an apartment or residential home.

Alternatively, it can be transformed into a small business- which project would you choose to take on?

St. David’s Crescent
Cost of property: £100,000
Estimated annual mortgage cost:  £4572
Annual salary when mortgage is 30% of total: £15,240

The kitchen (Photo: Zoopla)

On the market for a one bedroom property?

If so, you might be in luck as this St David’s Crescent home is on the market.

According to our calculations, you could comfortably live in this property if you earn £15.5K per year.

The property itself has a lot to offer, as it is well located and attractively presented.

The kitchen has a range of base units, along with laminate worktops.

Best of all, there is also a garden to the rear of the property.

Upper Power Street
Cost of property: £110,000 (guide price)
Estimated annual mortgage cost:  £5028
Annual salary when mortgage is 30% of total: £16,760

Upper Power Street property (Photo: Zoopla)

This two bedroom property is on the market for £110,000.

We estimate that you will need an annual salary of around £17,000 per year in order to live here comfortably.

However, this figure doesn’t take additional running costs into account, which Zoopla estimates to be an extra £7536 per year.

Both bedrooms are big enough to accommodate double bedrooms and a focal point of this house has to be the lounge, which boasts a feature fireplace.

Edward Street
Cost of property: £115,000
Estimated annual mortgage cost:  £5256
Annual salary when mortgage is 30% of total: £17,520

Edward Street property (Photo: Zoopla)

If you earn around £17,000 per year, our estimations suggest that you can comfortably afford this property.

The house has three bedrooms, making it the ideal property for growing families.

The kitchen is fitted with a range of wall and base units and there are plenty of surfaces for the new owner to prepare their meals on.

A perk of the property is the loft, which has been converted into a functioning room.

There is also a generous sized garden to the rear of the property.

Blake Road
Cost of property: £118,000
Estimated annual mortgage cost: £5400
Annual salary when mortgage is 30% of total: £18,000

The garden (Photo: Zoopla)

This might be the most expensive property on this list- but it is still over £62,000 cheaper than the average property in Newport.

The property has three bedrooms, one bathroom and two reception rooms.

The house is described as “deceptively spacious” with plenty of smart storage solutions.

To the front of the property is a driveway and to the rear is a seating area, lawn and storage shed.