First-time buyers now take 52.8% of UK mortgages, ONS finds

What the ONS figures show

First-time buyers made up 52.8% of UK mortgage sales in 2025, up from 33.8% in 2006, according to Office for National Statistics figures published on 18 September 2026. Their median loan-to-value ratio rose to 85.6%, the highest since before the 2008 financial crisis. The figures come from ONS Mortgage statistics, UK: 2025, published at 9:30am on 18 September 2026. They are official statistics in development, based on the Financial Conduct Authority's mortgage product sales data (PSD001). The data covers completed mortgage sales for house purchase and excludes remortgages and cash purchases.

There were 717,519 mortgage sales across the UK in 2025, up from 617,295 in 2024, the highest annual total since 2021, but around 34.5% below 2006. First-time buyer mortgage sales were 379,207 in 2025 against 369,596 in 2006. Second and subsequent buyer sales more than halved from 699,001 to 327,045 over the same period. In this data a first-time buyer is a borrower not selling another residential property, so it includes some people who have owned before. The shift in the mix of buyers therefore reflects both more first-time buyer sales and far fewer home-mover sales than in 2006.

Bigger loans, smaller deposits

The UK median first-time buyer loan-to-value ratio rose from 85.0% in 2024 to 85.6% in 2025, the highest since before the financial crisis. For all mortgage sales it rose from 79.6% to 80.3%. A higher loan-to-value ratio means the mortgage covers a larger share of the property price, so the deposit required is smaller in percentage terms. At an 85.6% loan-to-value ratio, the deposit is 14.4% of the price. At the all-sales median of 80.3%, the deposit is 19.7% of the price. These are medians, so half of first-time buyer mortgages had a higher loan-to-value ratio than 85.6% and half had a lower one.

There is wide regional variation. The highest first-time buyer loan-to-value ratios were in the North East at 89.8%, Scotland at 89.7% and Wales at 88.9%. London was lowest at 80.2%. Some local authorities such as Blackpool, Burnley, Sunderland, Dundee City and Merthyr Tydfil were around 90%, meaning roughly a 10% deposit. City of London was 70.0% and Kensington and Chelsea 72.5%. A higher loan-to-value ratio generally means a larger mortgage relative to the property value, which affects the amount borrowed and the monthly payment at a given interest rate.

Borrowing more times income

The average UK loan-to-income ratio rose to 3.5 in 2025 from 3.3 in 2024 for all sales, and to 3.6 from 3.5 for first-time buyers. Both remain below 2022 peaks of 3.7 and 3.8. Loan-to-income compares the size of the loan with the borrower's income. A ratio of 3.6 for first-time buyers means the average first-time buyer loan was 3.6 times income. The property value to income ratio rose from 4.4 to 4.5 for all sales and from 4.2 to 4.3 for first-time buyers. That compares the full property value with income, so it includes the deposit portion as well as the mortgage.

London had the highest loan-to-income ratio at 3.9 overall and 4.0 for first-time buyers. The North East had the lowest at 2.9. Broxbourne, Hillingdon and Spelthorne had the highest overall ratio at 4.2, while East Ayrshire was lowest at 2.4. The property value to income ratio was 5.2 in London and 3.6 in the North East. These ratios describe the relationship between borrowing, property values and incomes in the data. They do not include other household costs, existing debts or the lender's own affordability assessment.

Why home-movers have not come back

Second and subsequent buyer mortgage sales more than halved from 699,001 in 2006 to 327,045 in 2025. Over the same period, first-time buyer sales were broadly flat, at 369,596 in 2006 and 379,207 in 2025. The total number of mortgage sales was 717,519 in 2025, up from 617,295 in 2024 but around 34.5% below 2006. The data therefore shows that the fall in total sales since 2006 is accounted for by the drop in second and subsequent buyer sales, while first-time buyer sales are at a similar level to 2006.

The ONS data covers completed mortgage sales for house purchase and excludes remortgages and cash purchases. It does not explain why home-movers have not returned to pre-2008 levels. What the figures show is the change in the composition of mortgage sales: first-time buyers are now the majority at 52.8%, compared with 33.8% in 2006, and second and subsequent buyers are a smaller share. In this data a first-time buyer is a borrower not selling another residential property, so it includes some people who have owned before. The figures are official statistics in development, based on the Financial Conduct Authority's mortgage product sales data (PSD001).

What this means if you are buying now

For a buyer, the loan-to-value ratio determines the deposit needed. At the UK median first-time buyer loan-to-value ratio of 85.6%, the deposit is 14.4% of the property price. At the all-sales median of 80.3%, the deposit is 19.7%. In areas where the first-time buyer loan-to-value ratio is around 90%, such as Blackpool, Burnley, Sunderland, Dundee City and Merthyr Tydfil, the deposit is roughly 10% of the price. In City of London at 70.0% and Kensington and Chelsea at 72.5%, the deposit is 30.0% and 27.5% respectively. A larger deposit reduces the loan-to-value ratio and the amount borrowed.

The loan-to-income ratio affects how much can be borrowed relative to income. The average UK loan-to-income ratio was 3.5 for all sales and 3.6 for first-time buyers in 2025. In London it was 3.9 overall and 4.0 for first-time buyers; in the North East it was 2.9. Monthly payments depend on the mortgage rate, the amount borrowed and the term. Bank Rate is 3.75% after the Bank of England held it on 17 September 2026. Bank Rate is not a mortgage rate, but it influences the cost of borrowing. For more detail, see the first-time buyer and mortgage guides.

Source: ONS mortgage statistics bulletin, 2025.

Related coverage on Kael Tripton: FCA Mortgage Rule Review CP26/18: What It Means for First-Time Buyers, Self-Employed and Older Borrowers, First-Time Buyer ISA: Government Launches Consultation to Replace Lifetime ISA, Card Machines for Salons 2026: Deposits, No-Shows and the 1.69% Fee, Primera Sports Closure: How Deposit Customers Can Reclaim, Loan to Value Mortgage UK 2026: How LTV Affects Rates, Deposit and Lender Choice.

Frequently asked questions

What share of UK mortgage sales were first-time buyers in 2025?

First-time buyers made up 52.8% of UK mortgage sales in 2025, up from 33.8% in 2006, according to Office for National Statistics figures published on 18 September 2026.

What was the median first-time buyer loan-to-value ratio in 2025?

The UK median first-time buyer loan-to-value ratio rose from 85.0% in 2024 to 85.6% in 2025, the highest since before the financial crisis. For all mortgage sales it rose from 79.6% to 80.3%.

How many mortgage sales were there in the UK in 2025?

There were 717,519 mortgage sales across the UK in 2025, up from 617,295 in 2024, the highest annual total since 2021, but around 34.5% below 2006.

How did first-time buyer and home-mover sales change since 2006?

First-time buyer mortgage sales were 379,207 in 2025 against 369,596 in 2006. Second and subsequent buyer sales more than halved from 699,001 to 327,045.

What is the loan-to-income ratio for first-time buyers?

The average UK loan-to-income ratio rose to 3.5 in 2025 from 3.3 in 2024 for all sales, and to 3.6 from 3.5 for first-time buyers. Both remain below 2022 peaks of 3.7 and 3.8.