One in five first-time buyers now over the age of 40 and more are buying homes with dependents. But which lenders offer the most generous mortgages?
Data from Santander UK reveals that nearly one in five (18%) of first-time buyers are now aged 40 or over pushing up the average age for those getting a foot on the property ladder.
This latest homeownership data from Santander follows a recent report from the Office for National Statistics, which revealed that people are leaving their family homes and buying their own properties for the first time later in life. In 2022, more than half of people owned their own homes by 36 years of age, an increase from 32 years in 2004.
Graham Sellar, from Santander, commented: “Buying your first home is always a special moment and one of the major milestones we mark throughout our lives. However, for a number of reasons many people are deciding to rent or live with their families until later in life.”
Mortgage affordability is a significant issue, meaning younger people cannot buy a property without help, particularly from the Bank of Mum and Dad.
While many lenders are not as generous with the amount of money they will provide, partly because of the high base rate, income stretch mortgages are available to first-time buyers, professionals, and borrowers earning over £50,000.
The Bank of England has also noted that fewer people are borrowing more than four times their salary at a time when house prices are at record highs.
Which lenders offer the leading first time buyer mortgages?
Most larger banks and building societies offer low-deposit mortgages to first-time buyers, meaning many 5% deposit rates are available. Although rates are more competitively priced for borrowers with a 10% or 20% deposit.
Barclays, Halifax, Nationwide for Intermediaries and NatWest regularly offer leading rates to first-time buyers, although many smaller building societies and specialist providers also help. Banks like TSB are often more lenient when applicants have children.
Aaron Strutt, product director at Trinity Financial, says: “We have visits from the lenders and they tell us about the wide range of mortgages available to first-time buyers. According to Moneyfacts, there are more mortgages to choose from, but pricing fluctuates, and rates are being withdrawn after a couple of weeks on average.
"Skipton is still offering its 100% mortgages, and Nationwide has up to 5.5 times salary rates. Many lenders offer ‘joint borrower sole proprietor’ rates where parents can help their adult kids get a property.”
More first-time buyers purchasing homes with dependents
According to Santander data, the share of first-time buyers with at least one dependent increased from 10 per cent in 2009 to 20 per cent in 2023, indicating that more people getting their foot onto the first rung of the property ladder have families.
This is an issue for many first-time buyers because mortgage lenders regularly reduce the maximum loan size when applicants have children, childcare costs and other financial commitments.
If you are looking for a mortgage, it is important to ensure you get the most suitable product with the most competitive terms. Let Trinity's brokers open up the market for you.
Call Trinity Financial on 020 7016 0790 to secure a mortgage, book a consultation, or complete our mortgage questionnaire.
The information contained within was correct at the time of publication but is subject to change.
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