Analysis suggests that those wanting to get onto the property ladder can expect to pay around £400 more per month for their mortgage than five years ago. Property website Rightmove has done some calculations which suggest the average first-time buyer mortgage payment has risen by 61% since the last General Election year of 2019, from £667 to £1,075 per month. The calculations made various assumptions, including that first-time buyers would have a 20% deposit to put down, that their mortgage term would last 25 years and that they were taking out a five-year fixed-rate mortgage on an average rate.
For the research, Rightmove also used average asking prices of typical first-time buyer homes with two bedrooms or fewer. Tips for first-time buyers Across Britain, first-time buyers now face paying £227,757 for a home - an amount which has jumped by nearly a fifth (19%) since 2019, Rightmove said. In the north west of England asking prices for first-time buyer homes have jumped by a third (33%) since 2019 while London has seen the smallest percentage rise of just 6% over the past five years, according to the website.
London house prices are typically higher than elsewhere in Britain and the average price tag on a first-time buyer property there is over half a million pounds, according to Rightmove’s data. Rises in mortgage rates as well as house prices have also had an impact on monthly mortgage costs. Last week, the Bank of England base rate remained on hold but with Consumer .