First-time buyer mortgage payments nearly £150 lower than peak
- The latest data from Rightmove’s weekly mortgage tracker highlights that the average first-time buyer monthly mortgage payment is nearly £150 lower than the peak in July 2023, as mortgage rates decrease:
- The average monthly mortgage payment for a typical first-time buyer is now £949, compared with £1,096 at the mortgage rate peak in July 2023
- The average 5-year fixed, 80% Loan-to-Value mortgage rate is now 4.76%, compared with 6.12% in July 2023
- While first-time buyers in London will see the biggest cash savings, those in the South West will see the biggest proportional drop in outgoings
- Average wages are up by 4% over the same period, as affordability slowly improves
The latest snapshot of the mortgage market from the UK’s biggest property website Rightmove reveals that the average first-time buyer mortgage payment is nearly £150 lower than the mortgage rate peak in July 2023.
Rightmove’s weekly mortgage tracker shows how average mortgage rates have decreased since the peak in July 2023.
The average monthly mortgage payment for a typical first-time buyer is now £949, compared with £1,096 in July 2023, a saving of nearly £150 (£147), or 13%.
The figures are based on the typical first-time buyer market sector of two-bedroom and fewer homes and assumes a first-time buyer has been able to save up a 20% deposit and is spreading the cost of the mortgage over 30 years.
A typical first-time buyer home is now £227,191, compared with £225,552 in July 2023, while the average 5-year fixed, 80% Loan-to-Value mortgage rate is now 4.76%, compared with 6.12% in July 2023.
First-time buyers in the capital will see the biggest monthly cash savings compared with last year, though with higher property prices, they are likely to still be paying more than other regions on a typical mortgage.
Those in the South West will see the biggest proportional drop in monthly mortgage payments compared with last year, as it is the only region where first-time buyer property asking prices are now lower than in July 2023.
Meanwhile, average wages are up by 4% since July 2023, another sign of affordability slowly starting to improve. The UK inflation rate is also 2.2%, down from 6.8% in July 2023.
Tim Bannister, Rightmove’s property expert, says: “It’s early days, but the acceleration in mortgage rate drops since the Bank Rate cut at the start of the month means that home-movers are starting to see some tangible affordability improvements, particularly against the peak-rate period of just over a year ago. A nearly £150 saving in monthly outgoings for a first-time buyer compared with last year is significant, and though there will be many hoping that they drop further soon, we’re heading in the right direction ahead of the Autumn season.”
Regional first-time buyer trends
| Region | Average asking price | Average monthly mortgage payment | Monthly mortgage payment saving (£) vs July 2023 | Monthly mortgage payment saving (%) vs July 2023 |
| East Midlands | £192,838 | £805.68 | -£122 | -13% |
| East of England | £273,670 | £1,143.39 | -£189 | -14% |
| London | £509,085 | £2,126.96 | -£313 | -13% |
| North East | £133,581 | £558.10 | -£79 | -12% |
| North West | £176,972 | £739.39 | -£84 | -10% |
| Scotland | £140,051 | £585.14 | -£93 | -14% |
| South East | £294,605 | £1,230.86 | -£203 | -14% |
| South West | £252,158 | £1,053.52 | -£196 | -16% |
| UK | £227,191 | £949.20 | -£147 | -13% |
| Wales | £185,482 | £774.94 | -£95 | -11% |
| West Midlands | £194,448 | £812.41 | -£111 | -12% |
| Yorkshire and The Humber | £176,065 | £735.60 | -£102 | -12% |
Rightmove’s weekly mortgage tracker – 28th August
| LTV
(loan to value) |
Term
|
Average rate 28th August 2024 | Lowest rate 28th August 2024 | Average rate
a year ago |
|
All |
2 year fixed | 5.10% | 4.15% | 6.32% |
|
All |
5 year fixed | 4.74% | 3.83% | 5.72% |
| LTV
(loan to value) |
Term
|
Average rate 28th August 2024 | Lowest rate 28th August 2024 | Average rate
a year ago |
|
95%
|
2 year fixed | 5.83% | 5.44% | 6.62% |
|
95%
|
5 year fixed | 5.42% | 5.09% | 6.04% |
|
90%
|
2 year fixed | 5.52% | 5.14% | 6.51% |
|
90%
|
5 year fixed | 5.04% | 4.59% | 5.90% |
| LTV
(loan to value) |
Term
|
Average rate 28th August 2024 | Lowest rate 28th August 2024 | Average rate
a year ago |
|
85%
|
2 year fixed | 5.15% | 4.68% | 6.37% |
|
85%
|
5 year fixed
|
4.81% | 4.29% | 5.77% |
|
75%
|
2 year fixed |
4.86% | 4.40% | 6.17% |
|
75%
|
5 year fixed
|
4.53% | 3.99% | 5.57% |
|
60%
|
2 year fixed
|
4.38% | 4.15% | 6.01% |
|
60%
|
5 year fixed |
4.03% | 3.83% | 5.36% |
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