Deposits in some areas sit near 10%
Mortgage sales to second and subsequent buyers fell to 327,045 in 2025 from 699,001 in 2006, while first-time buyer sales rose from 369,596 to 379,207, according to the Office for National Statistics (ONS) in figures published on September 18.
First-time buyers borrowed a median 85.6% of property value in 2025, up from 85.0% in 2024 and the highest for the group since before the 2008 financial crisis. The median loan-to-value (LTV) ratio for all mortgage sales rose from 79.6% to 80.3%, about five percentage points below the first-time buyer figure. The ONS attributed the gap to equity that existing owners can put towards a deposit.
The Bank of England's second-quarter 2026 lender statistics, published on 8 September, put the share of gross advances above 90% LTV at 8.4%, the highest since the second quarter of 2008. Lending to borrowers with high loan-to-income (LTI) ratios reached 46.0%, up 4.6 percentage points year-on-year, with high LTI defined as 4 or above for single incomes and 3 or above for joint incomes.
The ONS figures give advisers a regional reference point for first-time buyer LTV and income multiples, and regulators have consulted on changes to the high LTI limit.
A changing buyer mix
First-time buyers made up 52.8% of UK mortgage sales in 2025, against 33.8% in 2006. Total sales reached 717,519, up from 617,295 in 2024 and the highest since 2021, although 34.5% below the 2006 level.
On the Bank of England's quarterly measure, first-time buyers accounted for 27.3% of gross advances in the second quarter of 2026, the lowest share since the first quarter of 2024, and home movers for 28.8%. The Bank's figures include remortgages, which the ONS excludes, so the two are not directly comparable.
The ONS defines a first-time buyer mortgage as one where "the borrower is not selling another residential property", so some borrowers in the category have owned a home before.
From Blackpool to Hackney
The North East recorded the highest first-time buyer LTV in 2025 at 89.8%, followed by Scotland at 89.7% and Wales at 88.9%, while London stood at 80.2%. Blackpool, Burnley, Mansfield, South Tyneside, Sunderland, North Lanarkshire, Dundee City, Blaenau Gwent and Merthyr Tydfil recorded ratios of around 90%, which implies deposits of around 10%.
Tembo's Q2 First-Time Buyer Index puts the average deposit at £41,202 in the north and £76,450 in the south. Paul Hampton of Approved Mortgage Solutions in Sunderland said average pay is £37,826 in the North East against £43,329 in the south, that borrowing capacity is fairly similar, and that saving for the deposit makes the difference.
Falls differ by region
The East Midlands recorded the smallest fall in total mortgage sales since 2006, at 25.7%, against 46.5% in London and about 42% in Northern Ireland. Sales to second and subsequent buyers fell 46.2% in the East Midlands and 66.5% in London.
Zoopla's analysis of the first half of 2026 found that 79.7% of first-time buyers in London paid Stamp Duty, with an average bill of £8,750, while more than four in five home movers paid in every English region except the North East, at 63.5%. Zoopla said existing homeowners account for six in 10 property purchases.
Income multiples and the regulator
The average loan-to-income ratio rose from 3.3 in 2024 to 3.5 in 2025 for all mortgage sales and from 3.5 to 3.6 for first-time buyers, both below their 2022 peaks of 3.7 and 3.8. London recorded 3.9 overall and 4.0 for first-time buyers, against 2.9 and 3.0 in the North East.
Of 360 local authorities with comparable first-time buyer data, 344 recorded an increase in the ratio between 2024 and 2025, six were unchanged and ten fell.
The Prudential Regulation Authority and Financial Conduct Authority have consulted on removing the 15% cap on the share of an individual lender's mortgages made at 4.5 times income or above, while keeping the 15% limit for the market as a whole. The consultation closed on July 1, and the PRA would publish the aggregate flow each quarter if the rules change.
Nationwide opened six-times income lending to home movers and remortgagors in January, with new customers needing incomes of at least £75,000 for sole applicants or £100,000 for joint applicants. Existing Nationwide borrowers moving in 2026 face no minimum income requirement.
Bank of England figures for July 2026 show net approvals for house purchase at 56,100, below a six-month average of around 60,800, and the effective rate on newly drawn mortgages at 4.45%, up from 4.35% in June.
The ONS release is labelled official statistics in development and excludes cash purchases. The next release is due in September 2027.
