Many expect to wait until 37 to buy as affordability pressures persist
More than a third of would-be first-time buyers believe they need a substantial lift in pay to reach their homeownership goals, according to new findings from Aldermore’s First Time Buyer Index.
The lender said 35% of prospective buyers calculate they require an average annual salary increase of £21,646 before they can proceed with a purchase.
Affordability constraints, driven by mortgage pricing and house values, are also reshaping saving plans. Nearly two thirds (64%) reported setting aside more than they originally anticipated, with respondents now expecting to amass £48,168 for a deposit.
The research suggests that some aspiring buyers are seeking to improve affordability by changing jobs or reworking their career plans. Aldermore found that 40% were looking for higher-paid roles, 22% had negotiated a pay rise and 21% had switched — or were considering switching — careers.
A further 20% said they had moved jobs to secure larger bonuses, while 17% had delayed leaving a role to support their mortgage application. The study also found 13% had entered, or considered entering, a career they did not like in order to buy a home.
Despite higher deposit expectations, the index indicates a gap between what prospective buyers think they will spend each month and what existing borrowers report paying. Respondents said they would be prepared to allocate up to 27% of income to mortgage repayments. However, Aldermore reported that, after tax, first-time buyers with a mortgage spent almost 31% of salary on average. The figure rose to 4% among borrowers aged 18 to 24, and to 37% for those living near London.
Aldermore said the disconnect is contributing to longer timelines to purchase. Aspiring buyers said they expected to become homeowners at 37, compared with an average purchase age of 31 among recent first-time buyers.
Saving periods were also extended, with 45% expecting to spend at least five years building a deposit and 5% anticipating it would take more than a decade.
“The UK’s first-time buyers aren’t just tightening their belts, they’re rethinking their entire career paths to try and get on the ladder,” said Jon Cooper (pictured right), director of mortgages at Aldermore. “From chasing pay rises to moving into different roles, prospective homebuyers are reshaping their working lives to secure a home of their own. Their ambition is as strong as ever, but the sacrifices they’re making are more significant.
“For anyone considering a career change to boost their income, it’s important to take a measured approach, looking at long-term earning potential, retraining options and if a new role genuinely aligns with your skills. Before making a major move, talk to your current employer about progression, responsibilities and a pay rise that could unlock opportunities without the upheaval of starting again.”
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