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Average mortgage term up two years to 32, as first-time-buyers extend repayments to get on the ladder

14th March 2024

•       Average age of first-time buyers down from 32 to 31 in a year

•       TSB reveals regional map of first-time buyers – with most completions in Scotland, the South East and North West

•       Video banking helping to speed up completions – with 50 percent reduction in days between application and offer

New data from TSB shows a year-on-year increase of the average mortgage term for first-time buyers – up to 32 years in 2023 from 30 in 2021[1].

Overall, first-time buyers accounted for 35%[2] of all mortgage completions in 2023 – with the average age of FTBs at 31, marginally down on 32 in 2022[3].

More than half (57%) of first-time buyers took out a joint mortgage for their first home, with 43 percent purchasing their home solo.

Across the UK, Scotland edged first place in the number of first-time buyers at TSB (17%), followed by the South East (16%) and North West (12%).

Video banking offers customers a speedier route to securing their mortgage  

TSB’s video banking technology contributed to halving the average time it takes a customer to receive their mortgage offer – down to just 11 days from 22[4], helping homeowners, and aspiring first-time buyers clinch the best deal in a rapidly changing mortgage market.

Video banking has fast become the most popular and efficient route for sealing a deal – and accounted for almost two-thirds (63%) of appointments in which customers purchased a mortgage directly from TSB in 2023.

Offering convenience such as giving joint customers the ability to join a call from different locations, and offering appointments outside of normal business hours, seven days a week (37% of appointments conducted this way) – it’s a growing channel of choice for TSB’s mortgage customers.  

Roland McCormack, TSB Mortgage Distribution Director, said:

“Across the UK, the drive to get onto the property ladder is bigger than ever – with first-time buyers taking out extended repayment terms to acquire a home.

“At TSB, video banking is proving a popular and convenient route to securing a mortgage and has helped halve the time taken for customers to secure a deal in a rapidly changing mortgage market.”

Notes to editors

1TSB data including January – December 2023 and January – December 2021.

 2TSB customer data including January – December 2023. 

3TSB customer data comparing January – December 2023 to January – December 2022.

 4TSB mortgage data comparing average application to offer times pre-video banking in 2020 to 2023.

Region Overall mortgage completions First-time buyers*
East Anglia 4% 3%
East Midlands 7% 7%
London 10% 9%
North West 11% 12%
North England 6% 7%
South East 18% 16%
South West 9% 8%
Scotland 14% 17%
West Midlands 8% 8%
Wales 4% 4%
Yorks & Humber 9% 9%

*First Time Buyers represented 35% of overall completions