First-time buyers becoming more highly leveraged
Original Article Summary
First-time buyers are leaning harder on high loan-to-value mortgages, analysis of UK Finance data from HouzeCheck has revealed. In the first quarter of 2025 the average LTV on a first-time buyer mortgage rose to 77.1%, an increase from 74.7% in Q1 2024. Richard Sexton, commercial director of HouzeCheck, said: “The days of massive equity cushions […] The post First-time buyers becoming more highly leveraged appeared first on PropertyWire.
PropMatch Curated Analysis
First-time buyer mortgage LTVs have risen significantly to 77.1% (from 74.7% in Q1 2024), driven by reduced ability to save deposits due to rising rents caused by landlord exodus and rental supply constraints. Scotland shows highest LTVs at 82.4% with fastest growth in East Anglia, South East, and London.
Investor Relevance
Indicates sustained rental demand as first-time buyers struggle to purchase, potentially supporting rental yields. However, signals market stress and affordability issues that could affect future property values and buyer pool quality. Regional variations highlight investment opportunity disparities.
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