This week in the JDG office we have been chatting about the struggles many first-time buyers are having when it comes to being able to afford to buy a home.
We’ve chatted with first-time buyers. We’ve chatted with their parents and we’ve also been chatting with local mortgage advisors so we can understand better the obstacles they face.
Like many people in the UK and indeed across the world, the cost of living crisis combined with an increase in interest rates has affected what first-time buyers can afford.
Many have chosen to combat this with higher deposits, often relying on the bank of Mum and Dad or gifts from grandparents. Others have chosen to take out longer-term mortgages.
When I bought my first home in 1999, the longest mortgage available was 25 years. I remember thinking I would be still paying it in my mid-40s. When you are in your early 20’s that is a scary thought!
Today’s first-time buyers tend to be older. The average age of a first-time buyer is now 34 in the UK! However many of these are taking longer-term mortgages, many mortgages are now 30 years plus which means many of today’s buyers will be still paying their mortgages off in their 60’s!
The average monthly mortgage payment for a first-time buyer is currently £1,194 per month, up from £1,048 per month last year. My first mortgage payment was £448 per month – this was in 1999 though!
What was yours? I’d love to know!
My name is Michelle Gallagher. We love to chat about property and we love property data. If you are thinking of buying or selling in Lancaster, we would love to talk with you! You can email me at firstname.lastname@example.org or call us on 01524 843322
Thanks for reading