The average age to step on the property ladder has increased in the last decade from 29 to 32, according to data from mortgage broker, Trussle.
Not only this, buyers are also seeking longer term mortgages which – in combination with the rising average first-time buyer age – means mortgage repayments will start eating into homeowners pensions, the broker said.
Indeed, first-time buyers have been taking out longer 35-year mortgages to combat spiralling house prices during the Stamp Duty Holiday, said Trussle.
Data from the Financial Conduct Authority (FCA) during this period revealed a record 63,158 35-year mortgages were taken out by first-time buyers. This represented a 75% year-on-year increase.
While this means first-time buyers will ultimately repay more over the course of their mortgage term, it will make their monthly repayments more affordable in the short term.
How will the cost-of-living crisis impact first-time buyer age?
Trussle also raised concerns the situation could be exacerbated further by the cost-of-living crisis warning it may mean the age of the first-time buyers continue to increase.
Amanda Aumonier, head of mortgage operations at Trussle, said: “This is an alarming trend that has been brewing for years. When purchasing a home, buyers naturally think about the here and now, which typically means looking for ways to keep their payments as low as possible.
“But, while taking out a longer-term mortgage can be an effective way to keep short term costs low, you will end up paying more back in the long term.
“Not only this, but you could also still be paying off your mortgage during a period of life when your income begins to drop.
“It’s no secret that housing affordability has been spiralling for years, impacting the possibility for many first-time buyers to get on the ladder.
“But, we have also taken a short term approach into calculating the impact of soaring house prices. This new data shows that the ramifications will reverberate for decades to come and will lead to consequences not yet accounted for.
“If this trend is to be addressed, we will need to see urgent action on affordability today.”
Loading ...