According to statistics from a UK real estate company, first-time buyers are now shelling out an average of almost £200 more per month than they were a year ago.
Rightmove reports that first-time buyers with a 15% deposit now pay £1,056 a month compared to £865 a year ago as a result of rising asking prices and interest rates.
However, costs have decreased as a result of the market turbulence that followed the Liz Truss administration’s September mini-budget.
The typical first-time buyer made a mortgage payment of £1,218 in October.
Due to the unfunded tax cuts and spending in the former chancellor Kwasi Kwarteng’s budget, many lenders removed mortgage products off the market, driving up mortgage rates when interest rate expectations rose.
Rightmove reports that the average asking price for a first-time buyer has reached a record high of £224,963.
The company reports that as a result of mortgage rates stabilising and purchasers’ determination to go on the housing ladder, demand for first-time homes is 11% greater now than it was before the pandemic.
The findings reveal that the average monthly mortgage payments for all home movers are stabilising.
With a 15% deposit, the average home buyer would pay £1,720 per month as opposed to £2,012 per month in October and £1,799 per month in January.
The combination of a new record price and higher mortgage rates than last year presents a barrier for first-time buyers, according to Rightmove’s Matt Smith, head of mortgage products.
Our research shows that first-time buyers who can afford a deposit continue to find buying to be enticing, with the number of persons wanting to move in this sector being higher than the last more typical market of 2019.