Average monthly payments nearly £100 lower than last year, Rightmove data shows
The average monthly mortgage payment for first-time buyers in the UK has decreased by nearly £100 compared to the same period last year, according to new analysis from Rightmove.
The property listing platform reported that a typical first-time buyer now pays £909 per month, down from £1,002 a year ago. The figures are based on homes with two bedrooms or fewer, a 20% deposit, and a 30-year mortgage term.
The decline in payments comes as mortgage rates have gradually fallen in 2025. The average two-year fixed rate for buyers with a 20% deposit has dropped from 5.21% to 4.38% over the past year. Similarly, the average five-year fixed rate has declined from 4.91% to 4.52%.
While mortgage rates have eased, average asking prices for first-time buyer properties have remained steady. The current average stands at £227,466, compared to £227,924 a year ago. At the same time, average earnings have risen by 5%, contributing to improved affordability for buyers.
In London, the most expensive city for first-time buyers, the average monthly mortgage payment has fallen by £240 compared to last year. The average asking price for a first-time buyer home in the capital is now £497,295.
Outside London, Aberdeen, Hull, and Carlisle are the most affordable cities for first-time buyers, while St. Albans and Cambridge follow London as the priciest locations.
The combination of lower rates and better affordability could drive more first-time buyers into the market, creating increased demand for mortgage brokers. As buyers seek guidance on product selection and navigating changing rates, brokers are likely to see higher enquiry volumes and a greater need for expert advice.
“Affordability is still playing a key role in market activity right now,” said Colleen Babcock, property expert at Rightmove. “The factors which contribute to buyer affordability are improving.
“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.”
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