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Average first-time buyer mortgage term rises to 32 years

Average first-time buyer mortgage term rises to 32 years
Shekina Tuahene
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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% 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% – of first-time buyers took out a joint mortgage, while 43% purchased alone.

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