First-time buyers are leaning harder on high loan-to-value mortgages, analysis of UK Finance data from HouzeCheck has revealed.<\/p>\n
In the first quarter of 2025 the average LTV on a first-time buyer mortgage rose to 77.1%, an increase from 74.7% in Q1 2024.<\/p>\n
Richard Sexton, commercial director of HouzeCheck, said: \u201cThe days of massive equity cushions are over \u2013 and they are unlikely to return anytime soon.<\/p>\n
\u201cFirst-time buyers are borrowing more to finance property purchases. Some would argue that it\u2019s a sign of confidence in the market.<\/p>\n
\u201cI don\u2019t think that\u2019s the case: it\u2019s a sign that potential first-time buyers living in rented accommodation can no longer save for deposits.<\/p>\n
\u201cAs landlords have left the market in the face of unhelpful regulation, the supply of rented property has shrunk, and rents have risen.<\/p>\n
\u201cThere\u2019s no sense that first-time buyers have hit a ceiling in how much they can stretch, either \u2013 look at the increasing number of zero deposit mortgages available now.\u201d<\/p>\n<\/p>\n
Average LTVs on first-time buyer mortgages are much higher in Scotland, where they rose to 82.4% in Q1 2025, up from 81.0% in Q1 2024.<\/p>\n
Sexton added: \u201cThe average LTV for a new first-time buyer mortgage in Scotland is high, even compared to London. And it\u2019s still rising.<\/p>\n
\u201cThe problem is that buyers in Scotland haven\u2019t been in a position to save for decent deposits for longer because the landlord exodus started earlier there.<\/p>\n
\u201cHousing is a devolved matter and anti-landlord legislation started earlier north of the border nudging up rents, limiting tenants\u2019 ability to tuck money away.<\/p>\n
\u201cFirst-time buyers in Scotland are increasingly turning to high LTV mortgages to get a foothold on the property ladder.\u201d<\/p>\n
Average LTVs for first-time buyers are rising fastest in East Anglia (up from 73.6% in Q1 2024 to 76.2% in Q1 2025), the South East (up from 74.0% to 77.3%), and in Greater London (from 67.1% to 72.0%).<\/p>\n","protected":false},"excerpt":{"rendered":"
First-time buyers are leaning harder on high loan-to-value mortgages, analysis of UK Finance data from HouzeCheck has revealed. In the first quarter of 2025 the average LTV on a first-time buyer mortgage rose to 77.1%, an increase from 74.7% in Q1 2024. Richard Sexton, commercial director of HouzeCheck, said: \u201cThe days of massive equity cushions […]<\/p>\n","protected":false},"author":1,"featured_media":1090,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-1089","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-second-home"],"yoast_head":"\n