Moneyfacts said based on the average UK house price, this would suggest these buyers have deposits of up to £110,000.
Its analysis also showed that 31% of first-time buyers were in need of 90% LTV mortgages, while 10% wanted a deal at 95% LTV. Moneyfacts said this showed that a notable share of first-time buyers, more than two-fifths collectively, were still relying on deposits of up to 10%.
Based on the average house price of £272,995, this would represent a deposit ranging from £13,650 to £27,300.
With an average two-year fixed mortgage rate of 4.48%, a first-time buyer at 60% LTV would have a monthly mortgage repayment of £1,387, while a new homeowner on a 5.41% rate at 95% LTV would be paying £1,522 – a difference of £135.
Looking at other borrower types, half of second-time movers require 60% LTVs, as do 71% of remortgagors.
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Consumer demand for fixed rate mortgages by LTV |
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|
Max Loan-to-Value (LTV) |
First-time buyers |
Second-time buyers |
Remortgage |
Moneyfacts Average Mortgage Rate (2-year fix) |
Monthly mortgage repayment* |
|
60% |
17% |
50% |
71% |
4.48% |
£1,387 |
|
75% |
16% |
24% |
17% |
4.88% |
£1,444 |
|
85% |
23% |
13% |
8% |
4.95% |
£1,454 |
|
90% |
31% |
9% |
3% |
5.24% |
£1,497 |
|
95% |
10% |
3% |
1% |
5.41% |
£1,522 |
|
Consumers comparing fixed term mortgage deals on moneyfactscompare.co.uk, 3 October to 2 November 2025, by borrower type and LTV. Average mortgage rates correct as at 31 October 2025. *Assumed £250,000 borrowed over 25 years. Capital and interest repayment. |
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Adam French, head of news at Moneyfactscompare.co.uk, said: “First-time buyers in particular are feeling the weight of affordability pressures, with many relying on more expensive high LTV loans due to the challenges of raising a sizeable deposit. Meanwhile, more established homeowners who have accumulated greater equity, are in a better position to benefit from lower LTVs and more competitive mortgage rates.
“However, a significant proportion of first-time buyers are seeking mortgages at lower LTVs, suggesting that many are receiving significant financial support from family contributions or inheritance. This marks a growing divide in the housing market as those without additional financial assistance face greater financial strain, particularly as they are more vulnerable to rising rates or potential housing market corrections.”
