Average mortgage for UK first-time buyer hits record high of 210,800

"The average first-time buyer borrowed 210,800 in the year to September, a record high, according to analysis by Savills, the property agent. First-time buyers accounted for 20% of all spending in the UK housing market in the 12-month period, which is the highest level since at least 2007, it added. This effect is even more pronounced in places such as London, with separate research from the estate agent Hamptons revealing that first-time buyers made more than half of all purchases in the capital this year."

"In total, Savills said mortgage lenders loaned a record 82.8bn to 390,000 first-time buyers in the period, a 30% increase on the previous year. The larger mortgages come as some first-time buyers skip the traditional first rung of the property ladder and buy a house rather than a flat. The average age of a first-time buyer is 34, according to the Mortgage Advice Bureau, while 31% have children by the time they get on the property ladder."

"Many first-time buyers also took advantage of the stamp duty holiday, which let them pay no tax on the first 425,000 of a property's value, to buy a larger home. This limit dropped back down to 300,000 in April. They also benefited from a buyer's market, with prices falling in some parts of the country. Lucian Cook, the head of residential research at Savills, said a significant driving force behind the record borrowing had also been the slightly more relaxed approach of lenders."

Average first-time borrowing reached 210,800 in the year to September, a record high. First-time buyers made up 20% of UK housing market spending over 12 months, the highest level since 2007. Mortgage lenders loaned a record 82.8bn to 390,000 first-time buyers, a 30% increase on the previous year. In London, first-time buyers made more than half of purchases. Some first-time buyers are buying houses rather than flats. The average first-time buyer age is 34 and 31% have children. Many used the stamp duty holiday and benefited from falling prices. Lenders have slightly relaxed affordability tests, making ownership more accessible.

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