Nearly half of first-time buyers – 45 per cent – picked a mortgage product of 30 years or over in 2018 to 2019, shows the latest English housing survey.
Published by the Ministry of Housing, Communities & Local Government, the survey shows that in 2008 to 2009, the proportion of FTBs who opted for a mortgage of this length stood at 33 per cent.
Overall, in 2018 to 2019, 19 per cent of mortgages were 30 years or longer in length and in 2008 to 2009, 7 per cent were.
MHCLG says that this could be indicative of mortgagors adjusting their monthly costs over time – something renters do not have the luxury of doing.
Within London, 11 per cent of FTBs had a mortgage length of 30 years or more in 2008 to 2009, whereas the latest reading stands at 58 per cent.
In terms of deposits, for FTBs the average median amount put down was £25,000 in 2018 to 2019, whereas it was £16,000 in 2008 to 2009.
For previous purchasers the medium deposit stood at £38,500 in 2018 to 2019, up from £22,000 in 2008 to 2009.
As one might expect, the reliance of FTB on family money has also increased – in 2008 to 2009, 22 per cent of FTBs used a family loan or gift to help their purchase. In 2018 to 2019, this had grown to 34 per cent.
The survey also shows that the mean weekly mortgage payment has grown 18 per cent in the last ten years – from £145 in 2008 to 2009 to £172 at its most recent reading.
Meanwhile, the mean private rented sector weekly cost throughout England has moved 31 per cent, from £153 a week to £200 a week within the same time frame.
In London the growth is higher – from a mean weekly rent of £233 a week a decade ago to £341 as of 2008 to 2009 – 46 per cent.
