More than half of individuals looking to purchase their first property already have a family to support, according to a survey conducted by HSBC.
HSBC’s annual ‘beyond the bricks’ survey outlines the challenges first-time buyers face and anticipate, says the firm.
Data in the survey reveals that since January 2018, the average mortgage term for FTBs has risen to 27 years and eight months, a three-and-a-half-year rise. In the same time frame, the average LTV for FTBs has increased from 72 per cent to 81 per cent.
In addition, FTBs are now also taking out mortgages for six years longer than those who are already on the property ladder.
The average age people expect to get onto the property ladder is currently 39. Meanwhile, the average age of individuals already on the property ladder when they bought their first home was 28.
The survey results also outline that two thirds of people, 64 per cent, intend to purchase their first home with someone else – either friend or family, and that the average FTB opens a Help to Buy Isa at 27 and a half, receiving £866 on average from the scheme.
HSBC adds that the average FTB saves £3,500 before purchasing a property and accessing the government’s bonus.
HSBC interim head of mortgages and savings Aaron Shinwell says: “It is encouraging to see recent figures showing that first-time buyer activity is increasing.
“With the scheme no longer accepting new applications after November, opening an account before that could make a real difference to when an FTB gets the keys to their first home.
“It is a concern, however, that the expectation of first time buyers is that they will not be able to get on the property ladder until they are forty years old, especially as more than half of those looking to get on the property ladder already have children to support.”