UK first-time buyers: how to get yourself mortgage ready

High property prices and rising interest rates and living costs are hindering would-be homeowners, but there are options

The weather is warming up, and so too is the property market, according to some reports – which may not be music to the ears of would-be first-time buyers.

The average asking price of a home in the UK has jumped by more than £5,000 (or 1.5%) in a month, according to the latest data from the property website Rightmove.

This month, TSB said the average age of a first-time buyer had come down slightly, from 32 to 31. However, high property prices and rising interest rates and living costs have forced some to lower their sights and look for a smaller property than they would ideally like.

“It has never been more difficult for aspirational homeowners to get on to the property ladder,” says Matt Bartle, the director of products at Leeds building society. But he adds: “There are options out there for those looking to buy their first home.”

The average asking price of a UK property has jumped by more than £5,000 in a month, says Rightmove. Photograph: Ian Nolan/Getty/Image Source

How much you can borrow will depend on three main things: your income, your outgoings and the size of the deposit you plan to put down.

There are lots of mortgage affordability calculators online that will give you an idea of the size of loan you may be able to get. The government-backed MoneyHelper website has one, as do many banks, mortgage brokers and comparison websites.

When you come to apply, the lender will carry out a detailed affordability assessment to work out what you can afford to repay based on your income and spending commitments.

Getting a decent deposit together

This is one of the biggest challenges facing would-be homeowners.

In January the Halifax said the average UK first-time buyer deposit in 2023 was £53,414 – representing about 19% of the typical purchase price.

According to the financial data provider Moneyfacts, at the start of this month there were 318 deals (fixed and variable) that let people borrow 95% of a property’s value.

If you want to find out a bit more then do get in contact with one of our advisers