Of those looking for fixed term deals on moneyfactscompare.co.uk:

• Almost one in three (30%) first-time buyers are opting for 90% LTV mortgages, and a further 12% are looking at 95% LTV options. This hints at many first-time buyers relying on 5-10% deposits. This translates to £13,560 to £27,120 at the average UK house price of £271,188 [source].
• Almost one in three (31%) first-time buyers are seeking mortgages with sub-75% LTVs. For context, a 25% deposit on the average UK house price would require a deposit of around £67,800, highlighting that there is a distinct group of first-time buyers in a favourable financial position.
• Borrowers with smaller deposits, or those who have accumulated less equity, could be paying £174 more per month more compared to those with a larger deposit or equity to borrow the same amount.
• Many homemovers want at least 25% equity before making their next move on the housing ladder. Around two-thirds of homeowners (69%) hit this threshold before progressing to a new property, with a further one in seven (16%), looking to move with 15% equity.

Adam French, Head of Consumer Finance at Moneyfactscompare.co.uk, said:

“The widespread of first-time buyer LTV demand reflects a housing market increasingly shaped by unequal starting points. While many first-time buyers are stretching themselves with 90–95% LTV mortgages due to deposit constraints, a notable minority are entering the market with substantial deposits, often helped by family support or inheritance.

“The concern is that it is creating a two-tier market where buyers with higher deposits can access cheaper rates and lower monthly repayments, while others pay a hefty premium. For second-time buyers and remortgage customers, the data shows equity remains king, with most waiting to build at least 25% equity. Although wise buyers should note that materially cheaper rates kick in at around 15% equity.”