First-time buyer mortgage payments hit 22.6% of gross income, the highest since the financial crisis, UK Finance finds
UK Finance's Q2 2026 Household Finance Review, published on 1 September, puts the average first-time buyer's mortgage payment at 22.6% of gross income - the highest since the 2008 financial crisis. The squeeze follows fixed-rate pricing rising around 100 basis points after swap rates spiked. For buyers that means less borrowing capacity and longer saving; for sellers, a thinner pool at the bottom of chains. It measures pressure rather than fresh deterioration - purchase demand is holding up rather than booming.
What this means for…
Buyers· 2/3
Sellers· 2/3
Wider market· 2/3
Each axis scored 1 (minor) to 3 (major). Total 6/9.
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14 Oct 2026 · Impact 6/9
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12 Oct 2026 · Impact 4/9
Average buy-to-let yield rises to 7.22% in Q3, the highest since early 2011, Paragon Bank finds
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