Aldermore First Time Buyer Index 2026

The latest edition of the First Time Buyer Index reflects a consistent commitment by Aldermore to showcase our latest insights and data on the first time buyer’s market.  
By surveying 500 actual new first time buyers and 2000 prospective purchasers, this report provides an understanding into the feelings, challenges and realities of today’s first time buyers in the UK. The journey to homeownership remains challenging for first time buyers.

This report brings together key insights and highlights that build a clearer picture of this customer demographic, drawing on attitudes, behaviours and the financial pressures shaping their path to owning a home. For intermediary partners, this report offers a high-level view of themes influencing first time buyers today, helping to inform conversations with informed topical guidance to support buyers with greater confidence as they move towards homeownership.

We hope you take away many of the learnings to help the next generation of homebuyers.  

Financials, Deposits and Savings Behavior 

• Average deposit 2025: £89,400
• Average first home price paid: £371,900
• Average planned deposit: £48,200
• 64% are looking to raise a larger deposit.
• 46% have not been able to save as much due to the rising cost of living. 

Deposit Expectations 

• London: £64,600
• Yorkshire & Humberside: £38,000
• North East: £35,000
• 12% have previously been declined for a mortgage. 

First Time Buyer Mortgages

• 53% are on a fixed rate mortgage.
• 19% are on a variable repayment mortgage.
• Average prospective FTB salary: £38,700.
• Deposit funding: 70% own savings, 40% joint savings, 20% parental assistance, 10% inheritance.

Affordability Pressures

• 71% rising cost of living.
• 63% high house prices.
• 33% increased mortgage repayments.
• 29% uncertainty on interest rates.
• 20% recession concerns.

Using a Broker 

71% of first time buyers used a mortgage broker or independent financial adviser. 
Sources for finding a broker include friends/family, estate agents, advisers, Google, building companies, and social media. 

Why Use a Broker?

• 40% had a recommendation from friends/family.
• 39% valued whole-of-market experience.
• 33% wanted affordability guidance.
• 29% found the process too complicated.

Prospective First Time Buyers 

• 24% already use a broker.
• 40% plan to use one.
• 95% of users found broker advice useful. 

Summary 

As the mortgage market becomes more complex, more first time buyers are recognising the value of professional advice. Brokers play a vital role in helping buyers understand options, navigate affordability pressures, and move towards homeownership with confidence.

Source: Research conducted, on behalf of Aldermore bank, by Opinium between 10th October - 03 November 2025, with a nationally representative sample size of 2,000 prospective first time buyers and 500 actual UK first time buyers who bought a home within the past 2 years.