Monthly first-time buyer mortgage payment down by GBP100 - Rightmove

(Alliance News) - The typical first-time buyer monthly mortgage payment has fallen by almost GBP100 from a year ago, Rightmove analysis showed on Thursday.

The Milton Keynes, England-based real estate portal operator said the average first-time buyer mortgage payment is currently GBP909 per month, down 9.3% from GBP1,002 per month last year.

Rightmove said the analysis is based on the typical first-time buyer property sector of two-bedrooms or fewer homes, and a deposit size of 20%, with mortgage costs spread over 30 years.

It noted that the average two-year fixed mortgage rate for someone with a 20% deposit has lowered to 4.38% from 5.21% this time last year.

Over the same period, the average five-year fixed mortgage rate for someone with a 20% deposit has fell to 4.52% from 4.91%.

"As mortgage rates have come down, average first-time buyer property prices have remained flat and average wages have increased – combining to slowly improve buyer affordability," Rightmove said.

The average asking price for a "typical first-time buyer property" is now GBP227,466, down 0.2% from GBP227,924 a year ago.

In London, Rightmove said first-time buyer mortgage payments are down GBP240 per month from a year ago. The average asking price for a first-time buyer type home in the capital is GBP497,295.

"Affordability is still playing a key role in market activity right now. The factors which contribute to buyer affordability are improving, and if we see further bank rate reductions this year followed by mortgage rate drops, this could spur more buyers on during the second half of this year," said Rightmove analyst Colleen Babcock.

By Michael Hennessey, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Copyright 2025 Alliance News Ltd. All Rights Reserved.