First-Time Buyers Borrow almost £60 billion in 2018

01 Sep 2019

First-Time Buyer Mortgage market continues to grow..

The First Time Buyers Market Trends Report 2019, the second edition of IRN’s First-Time Buyer Market Trends Report, finds that in 2018,  First-Time Buyers (FTBs) borrowed almost £60 billion to purchase their first homes, 4.4% more than in 2017. In 2018, the number of advances rose by 1.9%.  In 2019, IRN Research estimates the value of FTB mortgage advances will rise further by 4.3%,  while the number of loans will rise by 2.4%. At the end of 2018, FTBs collectively owed over £250 billion in outstanding mortgages, which represented a 6.8% growth over the amounts owed at the end of 2017.

And the First-Buyer Mortgage market set to continue to grow in the next five years

Despite the well documented problems faced by FTBs getting onto the property ladder,  IRN Research estimates that between 2019 and 2023, the number of mortgage advances by FTBs will rise by 23.3%, while the amount borrowed each year will rise by 38.9%, to reach over £80 billion in 2023. This will see the average advance in 2023 rise to £191,504 compared with £169,879 in 2019.

In addition, despite the UK mortgage market being slow to adopt new technologies, many in the industry now believe that an automatic, integrated (i.e. seamless) customer journey is now possible using artificial intelligence, open banking and digital ID verification technologies. This does not mean human interaction between consumer and broker or consumer and lender will be eliminated, rather it means many of the underwriting and case processing activities will be automated.

The First-Time Buyers Market Trends Report

The First Time Buyers Market Trends Report 2019 is the second edition of IRN’s First-Time Buyer Market Trends Report. This report updates and extends information contained in the first edition, published in July 2018. Like the first edition, this report outlines the broad trends and developments amongst first-time buyers (FTBs), who are defined as consumers who have arranged and taken out a mortgage on the first home they have owned within the last year.   The report focuses on the latest developments and market drivers of the FTB mortgage market, the market size and the future of the market in the coming five years.

The report (46pp, PDF), is available directly from IRN Research, priced at £250. UK sterling price is plus VAT so total price is £300.

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Related IRN Reports

First-Time Buyers Consumer Research Report 

Homeowner mortgages 

Buy-to-let Mortgages



IRN Team

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