Save, make, understand money

First-time Buyer

The average salary of a London first-time buyer revealed

Lana Clements
Written By:
Lana Clements

New homeowners in the capital have a typical gross household income of £70,000 – double that of Scottish buyers’ £35,000, figures show.

There were 11,700 new first-time buyer London mortgages in the three months to the end of September, the highest level since 2015, equating to £3.55bn of lending, according to data from the trade body, UK Finance.

By comparison, there were 8,900 first-time buyer mortgages in the third quarter in Scotland, a fall of five per cent from 2017.

The average first-time buyer in both Wales and Scotland is 29, compared to 30 in Northern Ireland and 32 in London

There were 4,300 new first-time buyer mortgages completed in Wales in the third quarter of 2018, and 2,700 in Northern Ireland.

Remortgages boom in Scotland

The data also showed a strengthened remortgage market in Scotland with 9,200 completed in the third quarter, up almost 14% year-on year.

In London there were 8,100 remortgages completed over the same period, down around five per cent from 2017.

Jackie Bennett, director of mortgages at UK Finance, said:​ “London’s mortgage market remained resilient in the third quarter of this year, despite an uncertain economic environment.

“The number of first-time buyers in the capital reached its highest level in three years, boosted by schemes such as Help to Buy.”

Douglas Cochrane, chair of UK Finance’s Scotland Mortgage Committee, added: “Scotland saw strong growth in remortgaging activity this quarter, as many fixed rate loans come to an end and customers continue to shop around for attractive deals.

“The number of first-time buyers has softened slightly compared to the same quarter last year while homemover purchases remain steady.”