First-time Buyers

Average first-time buyer mortgage term rises to 32 years

Average first-time buyer mortgage term rises to 32 years
Shekina Tuahene
Written By:
Shekina Tuahene

The average mortgage term for a first-time buyer has risen by two years to 32 years, analysis from a bank revealed.

Data from TSB showed this was up from the average mortgage term of 30 years in 2021.

This tracks with observations from UK Finance, which revealed a rise in first-time buyers selecting longer mortgage terms.

The recent UK Finance Household Review showed a fifth of first-time buyers had a mortgage term of more than 35 years in 2023, up from a tenth in 2022.

Within TSB’s customer base, first-time buyers accounted for 35 per cent of all mortgage completions last year, and they had an average age of 31. This was slightly down from the previous year’s average of 32 years.

More than half – 57 per cent – of first-time buyers took out a joint mortgage, while 43 per cent purchased alone.

The greatest share of first-time buyers was based in Scotland, TSB’s data showed, accounting for 17 per cent of this buyer base. This was followed by the South East with a share of 16 per cent and 12 per cent coming from the North West.

Efficient video banking

The lender said video banking was proving popular among its customers, and the use of this technology allowed borrowers to receive a mortgage offer in 11 days, down from a previous average of 224 days.

Video banking was also used by 63 per cent of borrowers who secured a mortgage directly from TSB in 2023.

Roland McCormack, TSB mortgage distribution director, said: “Across the UK, the drive to get onto the property ladder is bigger than ever – with first-time buyers taking out extended repayment terms to acquire a home.

“At TSB, video banking is proving a popular and convenient route to securing a mortgage and has helped halve the time taken for customers to secure a deal in a rapidly changing mortgage market.”