First-time buyer mortgage repayments drop 14%

What’s happened to Mortgage Repayments?
Recent base rate reductions by the Bank of England have spurred major lenders to lower their mortgage rates, providing some relief for those entering the housing market. Rates have now reduced considerably, resulting in lower monthly repayments for buyers today.

The Financial Benefits
The trend is certainly positive news. For those with a 20% deposit, the average rate for a 5-year fixed, 80% loan-to-value (LTV) mortgage is now 4.76%. This is a significant drop from the peak rate of 6.12% in July last year.

Leading property portal, Rightmove, reports a £203 reduction in monthly repayments for first-time buyers in our area, compared to July 2023. In line with this, the average price for a first-time buyer home is now 14% lower, currently at £296,605, and average monthly repayments are around £1,230.

Mortgage Cuts in Action
Major lenders like Nationwide, HSBC, NatWest, and TSB have already cut their fixed-rate mortgage offers this month. Whilst more might be on the horizon, financial experts are advising first-time buyers to act now rather than wait, as holding fire could mean missing out on current deals and facing higher variable rates instead.

Next Steps for First-Time Buyers
Recently, the housing market has seen some encouraging shifts for first-time buyers. If you’re considering buying your first home, now could be a great time to explore your options. We’d recommend speaking to an independent financial advisor, so you can find the deal that’s best for you. Feel free to contact with your local branch if you’d like us to refer you to one of our trusted partners.

Sources:

First-time buyer monthly mortgage repayments £150 lower than peak | Property news (rightmove.co.uk)