First-time buyers are amongst those struggling to afford their own home amidst the cost of living crisis. According to Rightmove, the average monthly mortgage payment for new first-time buyers who are putting down a 10 per cent deposit has now reached £1,057.
Following the Bank of England’s latest interest rate rise of 0.5 per cent, and with the base rate now at 2.25 per cent, this mortgage figure could jump to as high as £1,114 per month for first-time buyers. Rightmove also say that a 10 per cent deposit on a first-time buyer home is now 57 per cent higher than it was 10 years ago, making it increasingly difficult for people to save the necessary deposit.
The government's recent announcement to cut stamp duty may provide some additional support for first-time homeowners. As part of the mini-budget announced on Friday (September 23), Kwasi Kwarteng revealed that threshold for first-time buyers will increase from £300,000 to £425,000 which means that any first-time homeowner buying a property under £425,000 will not have to pay any stamp duty tax.
