What age are most first-time buyers?
The age we achieve life’s biggest milestones is changing, with the millennials getting married, having children and buying their first home much later than previous generations. So what age are most first-time buyers and how can you get on the ladder sooner?
What age are most first-time buyers?
The average age of a first-time buyer in England is 34 - although this is higher in some areas, like London where the average age is 1 year more at 35. This has risen from 31 years almost 20 years ago and is 5 years later than the average age to get married for the first time (31) and 7 years later than the average age for women to have their first child (29).
Note: This data doesn’t include Scotland, Wales and Northern Ireland, meaning some of the UK is excluded.
Can you be a first-time buyer at 40?
Yes, you can certainly be a first-time buyer at 40! In fact, one in five (20%) people don’t think they’ll be able to buy until their forties. More than eight in ten (84%) feel that their homeownership dreams have been impacted by the cost of living crisis. And almost half (49%) have delayed buying a home due to affordability concerns, and six in ten (60%) are postponing their plans to buy a home by up to three years.
The biggest barrier to buying a home is saving for a big enough deposit, although some borrowers have other affordability challenges like being able to afford the monthly repayments, or being able to borrow enough for the mortgage.
On average, our customers boost their budget by £88,000
Voted Best Mortgage Broker three years running, we specialise in alternative ways for first-time buyers to get on the ladder sooner. We’ve already helped thousands discover their true buying budget. To see yours, create a free Tembo plan today.
What is the average age to buy a forever home?
It’s impossible to know the average age to buy a forever home as what is a forever home is different from person to person. But we do know that the homes first-time buyers are buying have changed a lot over the years. Today, first-time buyers are buying smaller homes than in the past. They are most likely to purchase a two-bedroom flat, while back in the 1970s, the average first-time buyer was buying a semi-detached house with a garden!
How to buy your first home sooner
If you’d like to buy your first home before you need your first hip replacement, we can help. We specialise in first-time buyer schemes designed to help buyers get the keys to their own homes sooner. Here are just a few options to consider:
1. Lifetime ISA
If you’re saving a deposit and aged 18 to 39, a Lifetime ISA could help you speed up the process! You can save up to £4,000 in your LISA each tax year, and you’ll get £1 off the government for every £4 you save. That means if you save the full £4,000 each tax year, you could get £1,000 free each tax year you max out your account. Max out your LISA for 5 years in a row and you’ll get a £5,000 government bonus, bringing your total deposit to £25,000!
Earn hundreds more in interest with the market-leading LISA
Over 5 years, earn over £800 more in interest with the market-leading Tembo Cash Lifetime ISA vs the nearest market competitor.
When considering opening a LISA, remember that withdrawals for any purpose other than buying a first home or for retirement will incur a 25% government penalty, meaning you may get back less than you paid in.
2. Low deposit schemes
If you’re struggling to save, there are a number of initiatives designed to help you buy a home with a small deposit. Deposit Unlock, for example, lets you buy a new-build property from a participating home builder with just 5% saved. The government’s mortgage guarantee scheme lets you do the same, but includes older homes too.
If you’re renting and have no deposit at all, you may be eligible for Skipton's Track Record mortgage, which would allow you to borrow 100% of a property’s value as a mortgage!
3. Family supported mortgages
Over half of first-time buyers under 35 receive financial help from their parents, but your parents don’t necessarily have to wave goodbye to their savings to help you get on the ladder.
If your parents don’t have cash in the bank but they own their home, a Deposit Boost could be the answer. This involves releasing equity from your parents’ property through a small mortgage and putting the proceeds towards your deposit. If you already have a deposit of your own, you can combine your savings with the money released from your parents’ home to access lower interest rates by putting down a bigger downpayment. By borrowing less, you’ll also have more affordable monthly repayments.
Instead of giving you a deposit, your parents could use their Savings as a Security. This involves placing 10% of the property’s value in a savings account with your mortgage lender, where it’ll earn interest for a set period of time and be used as a security against your mortgage. If you make all your repayments during the agreed period, your helper will get their money back (plus any interest earned). It’s a win-win for everyone involved!
Your loved ones could also consider an Income Boost if they want to help but don’t have cash savings to hand. This involves adding your helper’s income (or a portion of it) to your mortgage application to boost your affordability. This can help you get on the property ladder sooner by increasing what you can borrow.
Another advantage is that although your loved one will be named on the mortgage (meaning they’ll need to help with your mortgage payments if you ever get into financial difficulties), they won’t be named on the property itself. The house is all yours!
Discover your true mortgage affordability
Create a free Tembo plan to discover all the ways you could buy sooner or increase your buying power.
