First-time buyer mortgage costs have risen by 7.3% year-on-year, with only a third of homes on the market being affordable, according to analysis of Government and Rightmove data by Alexander Hall.
The average first-time buyer house price in Great Britain was £244,519, requiring an average loan of £207,841 after a 15% deposit of £36,678.
The average mortgage rate, according to for first-time buyers would found to be 4.57%, up from 4.38% a year ago.
This results in monthly repayments of £1,164, reflecting a £79 increase over the past year.
Further findings from Alexander Hall showed that competition for properties is also tough, with around 436,839 homes currently listed for sale, and only 34% priced at or below the average first-time buyer price.
London had the highest average price for first-time buyers at £444,548, while the West Midlands had the lowest percentage of affordable properties, with just 27% listed at or below the average price of £214,955.
Other regions like Yorkshire and the Humber, Scotland, Wales, and the South West also showed lower percentages of affordable homes.
The North East offered the best access for first-time buyers, with 37% of current listings priced at or below the average first-time buyer house price of £146,393 in the region.
Stephanie Daley, director of partnerships at Alexander Hall, said: “Getting that first foot on the property ladder is no easy feat and today’s first-time buyers are facing a considerably tougher task than their predecessors, with the average price paid by a first-time buyer having increased by 52% over the last decade alone.
“Not only does this mean they require a larger deposit in order to secure a mortgage, but their monthly mortgage repayments are higher as a result, with this cost being driven up even further as a result of higher mortgage rates versus a year ago.
Daley added: “Of course, the initial challenge is finding a property within the boundaries of affordability and, as our research shows, only around a third of homes currently on the market are realistically affordable for the average first-time buyer.
“The good news is that we’ve already seen the Bank of England reduce interest rates already this year and, with more cuts expected to come, first-time buyers should start to benefit from easing mortgage rates.”
She said: “Our advice is, where possible, save that little bit extra when forming a mortgage deposit, as this will increase your property purchasing potential.
“It’s also well worth seeking the help of a top mortgage advisor, as they will ensure that you get the very best mortgage deal available to you, which can also help strengthen your position in the market and increase the potential number of homes available to you.”
