How higher LTV's can give first time buyers a lift onto the ladder

Being a first-time buyer in 2025

If you’re a first-time buyer (FTB), the statistics suggest you’re likely in your mid-30’s. It’s taking longer to save for a deposit because house prices are on the rise. In fact, the average price paid by a first-time buyer is just shy of £250,000, according to the Land Registry and prices are expected to rise another 3% in 2025. As a result, you’re probably renting for longer – and with rent costs hitting record highs in recent years, the challenge to buy can feel like an uphill struggle. The bottom line? It’s tougher than ever to get onto the first rung of the property ladder.

How higher LTVs can open the door to a first home  

The affordability gap mortgage seekers face has made it more difficult for many to purchase their first home. However, the mortgage market is an innovative sector, and flexible solutions exist for those curious to explore the benefits offered by a higher loan-to-value (LTV) mortgage.

At Hodge, our Resi mortgage offering includes up to 90% LTV on a repayment basis for purchases and remortgages, making a significant difference for FTBs making the leap from renting to buying. We’re helping customers across the UK secure their first homes with smaller deposits—turning their homeownership dreams a reality.  We also offer terms up to 40-years and look at each mortgage on a case-by-case basis – this personalised, common-sense approach to underwriting ensures we’re maximising your client’s affordability to give them the key to the home they can comfortably afford.

But it’s not just younger buyers benefiting from high LTV options. Increasingly, we’re seeing the 40+ demographic enter the market as first-time buyers. According to FCA research, FTBs aged 40 to 45 grew by 8% last year, while those aged 46 to 50 grew 6.9% and those aged 51 to 55 years saw a 6.6% increase. This is why our Resi Retire mortgage option, designed for clients whose mortgages extend into retirement, still offers an LTV of up to 85% on a repayment basis. This option is helping borrowers of all ages achieve homeownership, regardless of life stage or circumstance.

Why High LTV products should be on your radar     

Mortgage Solutions revealed nearly two-thirds of FTBs are unaware of the Higher LTV mortgage options. The 20% deposit requirement misconception remains a significant barrier for many potential buyers.

Together, brokers and lenders can play a crucial role in educating customers about the options available to them. This is especially important for those who might otherwise give up on homeownership due to misunderstanding the deposit they’ll need.

Why Hodge?  

Our flexible lending solutions are designed to help brokers find the right fit for their clients, whether they’re taking their first step on the ladder at 21, 40, or beyond. With tailored solutions for FTBs, homeowners, and retirees, we’re making it easier than ever for customers to achieve their aspirations at every stage of life.