Whereas increased loan-to-value (LTV) mortgages proceed to dominate the first-time purchaser market, new figures from Moneyfactscompare.co.uk reveal a stunning divide.
A major variety of new consumers are nonetheless searching for low LTV offers, hinting at rising monetary help from households or different sources.
In keeping with the information, virtually one in three first-time consumers are trying to find 90% LTV mortgages, and an additional 10% are taking a look at 95% choices—a transparent signal that many are coming into the market with modest 5-10% deposits. Primarily based on the typical UK home value of £272,995, that interprets to between £13,650 and £27,300.
On the identical time, virtually one in 5 first-time consumers are concentrating on mortgages with 60% LTV or much less. That might imply placing down a hefty 40% deposit, or roughly £110,000 on the typical residence – proof of a definite group of consumers in a far stronger monetary place than most. Many are seemingly drawing on financial savings, investments, or household help to spice up their deposits.
The figures additionally spotlight a stark distinction in prices between debtors. These with smaller deposits might be paying round £134 extra every month than consumers with bigger deposits, even when borrowing the identical quantity.
In the meantime, current owners seem to hit a vital tipping level as soon as they’ve constructed up round 25% fairness of their property. Reaching that threshold appears to offer many the boldness—or the monetary flexibility—to make their subsequent transfer up the housing ladder.
Collectively, the figures paint an image of a first-time purchaser market divided between these stretching to get a foothold with minimal deposits and people whose funds have been considerably bolstered by exterior help.
| Shopper demand for fastened price mortgages by LTV | |||||
| Max Mortgage-to-Worth (LTV) | First-time consumers | Second-time consumers | Remortgage | Moneyfacts Common Mortgage Charge (2-year repair) | Month-to-month mortgage reimbursement* |
| 60% | 17% | 50% | 71% | 4.48% | £1,387 |
| 75% | 16% | 24% | 17% | 4.88% | £1,444 |
| 85% | 23% | 13% | 8% | 4.95% | £1,454 |
| 90% | 31% | 9% | 3% | 5.24% | £1,497 |
| 95% | 10% | 3% | 1% | 5.41% | £1,522 |
| Shoppers evaluating fastened time period mortgage offers on moneyfactscompare.co.uk, 3 October to 2 November 2025, by borrower kind and LTV. Common mortgage charges appropriate as at 31 October 2025.
*Assumed £250,000 borrowed over 25 years. Capital and curiosity reimbursement. Supply: Moneyfacts Analyser |
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Moneyfactscompare’s Adam French stated: “First-time consumers specifically are feeling the load of affordability pressures, with many counting on dearer excessive LTV loans because of the challenges of elevating a sizeable deposit. In the meantime, extra established owners who’ve gathered better fairness, are in a greater place to profit from decrease LTVs and extra aggressive mortgage charges.
“Nonetheless, a big proportion of first-time consumers are searching for mortgages at decrease LTVs, suggesting that many are receiving vital monetary help from household contributions or inheritance. This marks a rising divide within the housing market as these with out further monetary help face better monetary pressure, notably as they’re extra weak to rising charges or potential housing market corrections.”
