£353 warning issued to Halifax, Nationwide, Santander, Barclays customers

First-time buyers are are typically paying £931 a month compared to £578 in 2019 – an extra £4,236 a year.

First-time buyers are paying £350 a month more on mortgage repayments than they were five years ago, it has been revealed. First-time buyers are are typically paying £931 a month compared to £578 in 2019 – an extra £4,236 a year.

The figures are according to research by experts at Rightmove and come as Halifax, Nationwide, Santander, Barclays and HSBC reduce mortgage rates. Tim Bannister, a property expert at Rightmove, said: “The improving market conditions compared with last year have led to a recovery in activity in the typical first-time buyer sector 'We're seeing more choice in this sector for would-be first-time buyers, and more potential buyers contacting agents versus last year.

“However, mortgage rates, while improved from the peak, are still high against recent norms. This has led to first-time buyers taking out longer terms, waiting longer to build up their deposit, and looking at cheaper areas to get onto the ladder. First-time buyer affordability remains stretched and any support that can help more to get onto the ladder would be welcome.”

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Matt Smith, Rightmove’s mortgage expert, said: “There are many people out there, particularly first-time buyers, who find themselves priced out of the home that they want because they can’t borrow enough or pass the stressed rate test. As our regional analysis shows, there are several hurdles for first-time buyers to clear, made more difficult with higher mortgage rates, and payments outpacing wage growth.

“Lenders, both new entrants to the market and major lenders, have looked at how they can work within the existing framework to provide more support to first-time buyers which has been really encouraging to see. We think there is the opportunity for the government to help unlock greater long-term affordability in a responsible way through a wider review of affordability criteria alongside the regulators and lenders.”