Halifax: 1 in 4 FTBs now choosing 35-year mortgage terms


First-time buyers are increasingly choosing 35-year mortgage terms, according to the annual Halifax First-Time Buyer Review.

The review says that 26 per cent of these buyers chose a 35-year mortgage in 2015, up 10 percentage points from 16 per cent in 2007.

Meanwhile the proportion of first-time mortgages with a 20- to 25-year term fell from 48 per cent to 30 per cent in the same period.

The Halifax research also says that there were around 310,000 first-time buyers last year, 0.5 per cent less than 311,700 in 2014.

Halifax says the small drop is due to fewer house purchases.

However, the number of new buyers in 2015 was still 60 per cent higher than the 193,000 seen in 2011.

Halifax mortgages director Craig McKinlay says: “For the second year in succession, the number of buyers getting on the first rung of the housing ladder has reached 310,000.

“Although the average price of the typical first-time buyer home has grown by 10 per cent in the past year, the number of buyers taking that first step onto the housing ladder has been supported by favourable economic conditions; namely, record low mortgage rates, rising employment and real pay growth.”

The average first-time buyer paid £190,000 for a house in 2015, up 10 per cent from £172,563 the year before.