What is the average mortgage for a first-time buyer in the UK?

The average first-time buyer mortgage reached a record £210,800 by September.

How have UK lenders changed affordability tests?

Lenders have reduced the interest rate at which they stress test borrowers, allowing for increased borrowing amounts.

Are house prices falling in the UK?

In December, average asking prices were £6,700 lower than in November, with some regions seeing price decreases.

Home / Business and Economy / First-Time Buyers Secure Record Mortgages

First-Time Buyers Secure Record Mortgages

15 Dec, 2025

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Summary

Average first-time buyer mortgage reached a record £210,800 by September.
First-time buyers represented 20% of UK housing market spending.
Lenders relaxed affordability tests, allowing larger borrowing amounts.

First-Time Buyers Secure Record Mortgages

First-time buyers in the UK are achieving unprecedented levels of homeownership, securing larger mortgages than ever before. This trend is largely attributed to a combination of rising wages and a more relaxed approach by mortgage lenders regarding affordability tests.

The average amount borrowed by first-time buyers reached a record £210,800 in the year leading up to September. This has contributed to first-time buyers making up 20% of total UK housing market spending, the highest proportion since at least 2007.