First-Time Buyers Pull Back as Mortgage Costs Rise: What to Check

A tougher market for new buyers

First-time buyers appear to be stepping back from the UK housing market as mortgage borrowing becomes more expensive. Figures from property portal Zoopla, reported on 13 November 2026, show enquiries from first-time buyers down 27% compared with a year earlier. That measures enquiries through the portal, not every first-time buyer in the country, but it suggests affordability is weighing on demand.

Why mortgage rates matter

The report puts average advertised two-year fixed mortgage rates at around 5.97% and five-year rates at about 6%. These are market averages rather than guaranteed offers to every applicant. Actual pricing depends on deposit size, income, credit history, property type and the lender. Even a modest difference in interest rates can make a noticeable change to monthly repayments on a large loan.

More homes, fewer enquiries

Zoopla's figures also suggest that the stock of two-bedroom homes for sale has risen 14% and the number of homes advertised below £200,000 is up 13%. Meanwhile, sales agreed are reportedly down 10.5%. This can mean buyers have more choice and some negotiating power, but it does not automatically make a home affordable when borrowing costs and deposit requirements remain high.

Start with the total monthly cost

Anyone considering a first purchase should look beyond the asking price. Mortgage payments are only part of the budget: buildings insurance, council tax, utilities, maintenance, service charges where applicable and moving expenses all matter. A lender's maximum borrowing figure is not necessarily a comfortable household budget. It can help to test whether payments would still be manageable if other living costs increased.

Check deposits and mortgage offers

A larger deposit may unlock different mortgage rates, but buyers should not empty their emergency savings without considering repairs or unexpected expenses. Compare the annual percentage rate of charge, arrangement fees, valuation costs and early repayment charges, not just the headline interest rate. Independent regulated mortgage advice can be useful, especially for applicants with variable income or unusual circumstances.

What happens next?

The housing market could change as lenders adjust rates and sellers respond to slower demand. The report also describes proposals for a new government-backed first-home scheme, but eligibility and final terms should be verified through official announcements before anyone relies on it. For now, buyers can use the quieter market to research carefully, build a realistic budget and avoid making a rushed offer.

Prospective buyers should also check whether the property is leasehold or freehold, ask about planned building work and understand any ongoing charges. A survey can uncover issues that are not obvious during a viewing. These checks take time but may prevent costly surprises after contracts are exchanged.

Sources and image

Source: The Times, 13 November 2026, reporting Zoopla first-time buyer and mortgage market data. Photograph: Samuel Regan-Asante/Unsplash; illustrative property image.