First-time buyers (FTBs) are being offered significantly higher maximum loan sizes compared to what they have requested, rising from 1.49x the requested loan size to 1.57x over the past three months, research from Acre has revealed.
The brokerage platform analysed requests and corresponding lender results from the year so far to give a snapshot of the state of lending across the UK.
The findings revealed that first-time buyers were borrowing 5% more than the same period last year, with the average loan size in the first half of 2025 reaching £240,299, compared to £227,717 in 2024.
For FTBs considering Shared Ownership properties, the average loan agreed stood at £111,890 with a more affordable loan-to-income value of 2.46x than the 3.40x seen for those borrowing without Shared Ownership.
Acre’s data also showed the stark North-South divide in how far FTBs are extending themselves.
While the highest loan-to-income figures are predictably found in London and the South East, unexpected rural and small town pockets like Harrogate, Wick/Orkney, Falkirk, and Shrewsbury/Powys were also notably expensive versus incomes compared to surrounding areas.
Justus Brown, CEO and founder of Acre, said: “Our findings lay out the crippling affordability challenges faced by many first-time buyers, being forced to borrow more, particularly in areas with a strong jobs market and in emerging expensive rural locations.
“Brokers are constantly navigating these choppy affordability waters for their clients, equipped with the responsibility of securing the best-suited mortgage without putting any undue pressure on them.”
