The average first-time buyer mortgage payment has increased by 61% since the last General Election in 2019, Rightmove has revealed.

In its latest first-time buyer study, the firm found that in the past five years, the average mortgage repayments for first-time buyers increased from £667 to £1,075, as rates have remained elevated.

The research also revealed that the average monthly payment "significantly" outpaced wage growth, which is up by 27% over the same period.

The mortgage payment calculations by Rightmove assume that first-time buyers are taking out a five-year fixed mortgage, spread across 25 years, at 80% LTV, the average for first-time buyers according to UK Finance data.

The average five-year fix at 80% LTV is now 5.09%, compared to 2.24% in 2019, with the average first-time buyer home now worth £227,575, a 19% increase over the same period.

While the study shows the increase in mortgage rates for first-time buyers, Rightmove has suggested that a Bank of England rate cut will have the most immediate benefit for those trying to get onto the housing ladder, as it should lower mortgage rates.

Property expert at Rightmove, Tim Bannister, said: "As rates have increased over the last five years, the amount that a typical first-time buyer is paying each month on a mortgage has outstripped the pace of earning growth. Some first-time buyers are looking at extending their mortgage terms to 30 or 35 years to lower monthly payments, or looking at cheaper homes for sale so that they need to borrow less.

"If mortgage rates reduce, this will help first-time buyers in the short term more so than election housing promises. We hope that the next government can support first-time buyers with well-thought out policies, which address the difficulties of saving up a large enough deposit and being able to borrow enough from a lender."

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