Halifax has emerged as the most dominant lender for first-time buyers thanks to its strong mortgage offerings for low deposit borrowers and its ‘Family Boost’ product.
The lender was revealed in Better.co.uk’s Home Buying Index as having the highest average percentage of new build mortgage applications over the last 12 months – in fact it processed 20.09%.
According to the analysis by mortgage broker Better.co.uk, Halifax was offering the highest proportion of loans to first-time buyers for both new build and older homes.
Amanda Aumonier, director of sales & operations at Better.co.uk, “Our data indicates that Halifax is the dominant lender for first-time buyers purchasing either an older property or a new build.
“From supporting the government’s Mortgage Guarantee Scheme to their Family Boost product, they’re an attractive, reputable lender for first-time buyers.
“Halifax also often have some of the most favourable rates for first-time buyers, as well as being one of the quickest to process applications.”
Leeds Building Society was named second on the list thanks to its favourable lending criteria for first-time buyers with low deposits and those requiring shared ownership mortgages. Over the last year the percentage of mortgages for new builds issued was 10.29%.
Better.co.uk said Barclays (10.29%), Skipton Building Society (8.62%), HSBC (6.9%), Santander (5.51%), Nationwide Building Society (5.11%), Virgin Money (4.13%), Accord (3.69%) and NatWest and TSB (both 3.17%) also featured in the ‘top 10’.
Locations for first-time buyers purchasing new build homes
The broker also looked at property prices of new builds in different areas across the UK to establish the places where first-time buyers could find the best value.
According to the 2023 Home Buying Index average property values in Rotherham, Lincoln, and Darlington saw the largest percentage increases for first-time buyers.
Meanwhile, typical property values in Carnforth, Ashford, and Burton-on-Trent saw the largest percentage decreases.
Aumonier said when comparing the median property prices for first time buyers between November to April and May to October, the average property price fell by 0.67%, from £240,125 to £238,499.
“While the slight decline in 2023 property prices for first-time buyers was welcome, this modest decline is arguably less than what many were hoping for,” she said.
Traditional first properties for first-time buyers, such as flats and terraced houses, have both experienced median increases of 3.09% and 0.91% in the dates used for comparison. Meanwhile, Semi-detached properties increased by 4.76%, and detached houses went up by 17.8% for this cohort.
“This demonstrates,” said Aumonier, “the ever-growing value of British property, with first-time buyers increasingly desperate to get on the property ladder while they can. Surprisingly for first-time buyers, older properties (properties that have left the ownership of the developer) have generally increased in value this year (with the exception of flats).”
