First-time buyers with small deposits are facing significantly higher mortgage repayments, with new figures showing monthly costs have risen by £147 since November 2025.
Moneyfactscompare says borrowing costs remain a major obstacle for prospective homeowners ahead of today’s Autumn Budget.
Its calculations show that the average repayment on a £250,000 mortgage over 25 years, at 95% loan-to-value, has increased by £147 a month.
That represents an additional £1,764 annually.
The comparison uses average two-year fixed rates of 5.41% in November 2025 and 6.38% now.
Rachel Springall, finance expert at Moneyfactscompare, warned that buyers should not make financial decisions based solely on Budget speculation.
Affordability pressures mount
Springall said first-time buyers face one of the toughest affordability environments since the global financial crisis.
According to UK Finance figures cited by Moneyfactscompare, mortgage repayments account for an average of 22.6% of gross income for first-time buyers.
Meanwhile, the government’s proposed Your First Home scheme could help some purchasers access new-build properties with smaller deposits.
However, Springall warned that the initiative would not address every obstacle.
“One scheme alone will not turn the market around, and improving affordability and housing supply will be vital if market conditions are to improve,” she said.
Existing borrowers face refinancing shock
Higher rates are also affecting homeowners approaching the end of fixed-rate mortgage deals.
Moneyfactscompare estimates that the typical monthly repayment on a £250,000 mortgage over 25 years has increased by £131 since November 2025.
That calculation uses its Average New Mortgage Rate, which has risen from 4.99% to 5.87%.
The annual difference is approximately £1,572.
Meanwhile, almost 900,000 mortgages secured a new deal up to six months before maturity during the first half of 2026, according to FCA figures cited by Moneyfactscompare.
Springall wants more lenders to offer borrowers the option of securing a new product six months before their existing deal expires.
She argues that this could help households manage uncertainty around mortgage pricing.
Buyers warned against Budget speculation
Springall also cautioned against making rushed decisions before the chancellor’s statement.
“Consumers must not make rash financial decisions on speculation alone, and instead, seek advice to go through the official announcements from the Budget,” she said.
For estate agents, higher mortgage costs continue to affect buyers’ budgets, affordability assessments and the ability to progress transactions.
The Budget’s wider impact on government borrowing costs and market confidence could therefore prove as important as any direct housing measures.
