The average mortgage taken out by first-time buyers in the UK has soared to a historic high of £210,800, according to new analysis. Data covering the year to September 2025 reveals unprecedented borrowing levels as more people strive to get onto the property ladder.
Record Borrowing and Market Share
Property agent Savills conducted the research, which shows the £210,800 figure is a new record. In the same 12-month period, first-time buyers were responsible for 20% of all spending in the UK housing market. This represents the highest proportion of market activity from this group since at least 2007.
Lenders advanced a colossal £82.8 billion to approximately 390,000 first-time buyers. This marks a substantial 30% increase compared to the previous year's lending total.
The Profile of Today's First-Time Buyer
The typical first-time buyer is now 34 years old, according to separate data from the Mortgage Advice Bureau. Furthermore, the analysis indicates that a significant 31% have children by the time they purchase their first home, highlighting the challenges of delayed homeownership.
Lucian Cook, head of residential research at Savills, identified key factors behind the trend. He pointed to a "slightly more relaxed approach" from mortgage lenders, alongside lower borrowing costs and lower real house prices compared to recent peaks. "Home ownership is more accessible now than at any point in the last three years," Cook stated.
Broader Economic Context and Regulatory Scrutiny
This surge in mortgage lending occurs against a backdrop of increased regulatory attention on financial stability. The Bank of England has announced it will begin stress-testing how private credit and equity firms would withstand a financial shock.
Governor Andrew Bailey said the Bank had to take concerns over potential failures "very seriously." This move follows a decade of explosive growth in the sector, where total assets in private credit and equity funds have ballooned from around $3 trillion (£2.25 trillion) to $11 trillion (£8.23 trillion). The central bank stated that these firms have not been tested against a severe global downturn before, prompting the new resilience review.
The convergence of record household borrowing and heightened scrutiny of shadow banking underscores a complex economic landscape for UK policymakers and prospective homeowners alike.
