The common mortgage time period for a first-time purchaser has risen by two years to 32 years, evaluation from a financial institution revealed.
Data from TSB confirmed this was up from the typical mortgage time period of 30 years in 2021.
This tracks with observations from UK Finance, which revealed an increase in first-time patrons deciding on longer mortgage phrases. The recent UK Finance Household Review confirmed a fifth of first-time patrons had a mortgage time period of greater than 35 years in 2023, up from a tenth in 2022.
Within TSB’s buyer base, first-time patrons accounted for 35 per cent of all mortgage completions final 12 months, and so they had a median age of 31. This was barely down from the earlier 12 months’s common of 32 years.
More than half – 57 per cent – of first-time patrons took out a joint mortgage, whereas 43 per cent bought alone.
The biggest share of first-time patrons was based mostly in Scotland, TSB’s knowledge confirmed, accounting for 17 per cent of this purchaser base. This was adopted by the South East with a share of 16 per cent and 12 per cent coming from the North West.
Efficient video banking
The lender stated video banking was proving in style amongst its prospects, and using this know-how allowed debtors to obtain a mortgage supply in 11 days, down from a earlier common of 224 days.
Video banking was additionally utilized by 63 per cent of debtors who secured a mortgage straight from TSB in 2023.
Roland McCormack, TSB mortgage distribution director, stated: “Across the UK, the drive to get onto the property ladder is larger than ever – with first-time patrons taking out prolonged compensation phrases to amass a home.
“At TSB, video banking is proving a popular and convenient route to securing a mortgage and has helped halve the time taken for customers to secure a deal in a rapidly changing mortgage market.”
Shekina is the industrial editor at Mortgage Solutions, YourMoney.com’s sister title within the B2B trade. She has over 4 years’ expertise within the B2B publishing market, with earlier industries together with the accounting, pet, funeral, hospitality, retail and jewelry trades.
She at the moment experiences on present occasions within the mortgage market and liaises with monetary purchasers to provide sponsored content material.
Follow her on Twitter at @ShekinaMS