First-time buyers hit hard by rising mortgage rates

First-time buyers are facing a tough market as they are up to £9,000 worse off compared to last year due to the end of Help to Buy and soaring mortgage rates. The average monthly repayments have increased by £354, equating to £4,252 extra per year for the average £250,000 home outside London. In London, where the average first-time buyer property is £450,000, repayments are £755 a month more, or £9,058 a year. The study, conducted by the Liberal Democrats, has sparked calls for a new scheme to replace Help to Buy. The calculations were based on a 5% deposit, repayments over 25 years, and a 2.79% five-year fixed-rate mortgage taken out in 2022 compared to a 5.01% rate now without Help To Buy. "There has never been a worse time to be a first-time buyer," said Lib Dem housing spokesman Helen Morgan.

Daily Mail (29/05/2023)