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First-time Buyer Mortgage Tops £1,000 a Month as House Prices and Rates Rise

The monthly mortgage payments for first-time buyers have surged by over 60% to surpass £1,000 a month since the last general election. This increase highlights the growing financial difficulties faced by individuals attempting to enter the property market. In the past five years, the average monthly mortgage payment for a typical first-time buyer in Great Britain has climbed by 61% to reach £1,075, up from £667 in 2019, as reported by the property website Rightmove. This significant rise in mortgage costs has forced many borrowers to consider purchasing smaller homes or opting for longer loan terms. The combination of escalating house prices and rising interest rates has contributed to this substantial increase in mortgage payments, making it increasingly challenging for first-time buyers to afford a property.

What has been the increase in the average monthly mortgage payment for first-time buyers since 2019?

The average monthly mortgage payment for first-time buyers has risen by 61% to exceed £1,000 a month since 2019.

How has this increase impacted first-time buyers?

This increase has pushed first-time buyers into smaller homes or to opt for ultra-long loans in order to afford their mortgage payments.

According to the article, what are some of the factors contributing to the rise in monthly mortgage payments?

The rise in monthly mortgage payments is attributed to increasing house prices and interest rates.