How to Find Mortgage Deals for First Time Buyers
Over the past decade, the cost of buying a property has risen significantly, and the current economic climate is still challenging for first-time buyers. If you’re looking for mortgage deals for first-time buyers, there are several factors to consider. In this blog, we have shared some updates for those looking to get onto the property ladder.
Affordability and economic conditions
According to Rightmove, the average monthly mortgage bill for a first-time buyer reduced over 2024. Monthly mortgage repayments for first-time buyers averaged £949 a month, when compared to £1,096 in July 2023 (Rightmove). This calculation is based on the cost of a two-bed or fewer roomed property with a 30-year mortgage term and a 20% deposit. It’s thought that the reduction in mortgage bills is partly due to the fall in the CPI inflation rate.
Although the CPI inflation rate decreased from 6.8% in July 2023 to 2.2% in July 2024, it has recently risen to 2.3% (December 2024). The average first-time buyer is still struggling with high mortgage rates, affordability, and saving for a deposit. However, the recent rise in the National Minimum Wage and National Living Wage may help those with financial constraints.
Affordable housing and government schemes
The government is expected to build 50% of new developments on green belt land, which needs to include affordable housing. A New Homes Accelerator programme has also been launched by the government. The aim is to speed up the delivery of new homes that are currently stuck in the planning system.
Across 200 sites in England, it’s estimated there are 300,000 new homes with outline or detailed plans that have not yet been built. This new programme hopes to resolve local issues and address any blockages on each site. This should help to meet the government’s target to build 1.5 million new homes and drive economic growth.
The government has also promised to extend the Conservative’s Help to Buy scheme, under the new name of Freedom to Buy. This aims to give 80,000 young people the opportunity to get onto the property ladder. As a result, lenders are likely to be encouraged to offer more mortgages for those who cannot afford a larger deposit.
There are a few other government-backed schemes still available for first-time buyers. These include the Mortgage guarantee scheme, First Homes scheme, and Shared Ownership schemes. For more information on current government schemes for first-time buyers, please read our blog, Update on First Time Buyers Relief.
First Time Buyer Mortgages
Over recent years, first-time buyers in the UK have struggled to get onto the property ladder, due to high interest rates and rising costs. However, there are suitable first-time buyer mortgages available if you use an experienced mortgage adviser.
At Bubble Finance Hub, we regularly help those who are looking to buy their first home. Our approachable and empathetic team have a bespoke approach to mortgage advice. We can also source hundreds of mortgage deals from across the market.
If you’re a first-time buyer looking for a mortgage, get in touch to book an appointment.
As with all insurance policies, conditions and exclusions will apply.
Your home or property may be repossessed if you do not keep up the repayments on your mortgage.
Thank you for reading our blog, How to Find Mortgage Deals for First Time Buyers.
Bubble Finance Hub