Property Ladder

First-Time Buyers across Great Britain are paying, on average, almost 20% less per month on mortgage repayments (£1,038), than the average rent of £1,248.

Renting, for many, is seen as ‘dead money’, as you’re not benefiting from the investment of your money, time and effort within your own property.

Of course, renting works well for some, particularly if you want to have less ties, or perhaps would like to test out an area, or even a relationship! Or, possibly, still need time to save up the money required for a deposit. Plus, there will be fewer hurdles to jump, compared to the strict borrowing criteria set out by the lenders.

Loosening of affordability rules…

However, the strict borrowing criteria may have become less strict, as the industry regulator, the Financial Conduct Authority, discussed back in March that lenders could consider loosening up their affordability rules.

Elsewhere, there has also been talk of relaxing the income multiple rule. Presently, only 15% of new loans can exceed 4.5 times salary.

Of course, within that 15%, we’re already seeing some borrowers benefiting from deals where the loan to income amount sits at five, six, or possibly even seven times!

Building up, or securing a deposit

This is often the main stumbling block. In 2024, the average deposit was £61,090, which equates to around 19.6% of the purchase price.

Delivering a circa 20% deposit will obviously open up better rates than for those who are looking at deals at around a 5% deposit (or less). Although, for some, the lower deposit option may be more appealing, as it’ll get them onto the property ladder sooner.

We’ll also consider that the first-time buyer may not be alone in this process, as many will benefit from financial help via parents (and grandparents). Or, there’s the pragmatic approach taken by some, where two (or more) people are clubbing together to obtain their first home.

Be creditworthy

A credit score is designed to try to predict your future behaviour. And, as every lender has its own ‘ideal customer’ profile, a poor score that results in a rejection from one isn’t necessarily a rejection from all.

That’s why it makes sense to talk to us, once you’ve run your initial check, as there may be simple tweaks that will deliver a more favourable response for credit.

You can check your rating at agencies such as Experian, Equifax, and TransUnion. Or take a look at Checkmyfile, which generally brings together your results across most rating agencies:

Tel: 0800 086 9360
www.checkmyfile.com

Talk to us

Of course, it’s no surprise that most first-time buyers, may find the whole mortgage borrowing process to be quite complex, time-consuming, and possibly confusing. Particularly as most of you will lead very busy lives, and this process may be seen as an added problem, if handled alone.

And that’s where we come in. We can assist with your application, factor in any financial support from the family, take a look at the credit rating, and assess where you stand on meeting the lender’s affordability criteria – which varies across the board.

We’d also consider the various schemes on offer from the government, or perhaps the recent innovative collaborations between lenders and builders.

If this route is of interest for you (or a family member), then please get in touch to find out more. And you can take comfort from the fact that we operate in this sector day-in day-out, plus have the qualifications and expertise to deliver advice that meets your needs.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Source: Zoopla, March 2025)
(Source: Halifax, First-Time Buyer report, February 2025)