FTBs seeing stretched lending ratios, research finds

First-time buyers (FTBs) are being offered significantly higher maximum loan sizes compared to what they have requested, new analysis from brokerage platform Acre has revealed.

Acre’s research revealed that maximum loan sizes for FTBs have risen from the 1.49 times average requested loan size to 1.57 times over the last three months.

The group suggested that this trend is likely to denote an increased willingness on the part of lenders.

FTBs eager to get on the ladder are borrowing 5% more than the same period last year, with the average loan size in the first half of 2025 reaching £240,299, compared to £227,717 in 2024.

Despite this increase in borrowing, however, Acre highlighted that borrowers are struggling to keep pace with average house price growth – which was a year-on-year 6.7% according to the May figures from the ONS.

CEO and founder of Acre, Justus Brown, said: “Our findings lay out the crippling affordability challenges faced by many first-time buyers, being forced to borrow more, particularly in areas with a strong jobs market and in emerging expensive rural locations.

“Brokers are constantly navigating these choppy affordability waters for their clients, equipped with the responsibility of securing the best-suited mortgage without putting any undue pressure on them.”



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