First-time buyers face the greatest exposure to volatility in mortgage markets, with 90.5% using financing to purchase homes over the past six months, according to data from comparison website Reallymoving.
The figure represents the highest mortgage dependency rate among all buyer categories, exceeding upsizers at 87%, investors at 82%, and downsizers at 40.5% during the same period.
Regional variations
In March, mortgage usage among first-time buyers reached 92.6%, marking the highest proportion recorded in over a decade. Dependency rates exceeded 90% in most UK regions, with only the North East at 87.7%, Wales at 88.5%, and Yorkshire & Humber at 89.8% falling below that threshold.
London recorded the highest overall mortgage dependency at 87.4% of all buyers, with first-time buyers accounting for 63% of the capital’s buyer pool. The concentration makes London’s housing market particularly sensitive to changes in lending conditions, similar to concerns raised in recent calls for government intervention on rising buy-to-let costs.
Market conditions
Rob Houghton, founder and CEO at Reallymoving, noted that expectations for cheaper borrowing in 2026 have reversed. “Lenders are spooked and amid the uncertainty we’re seeing hundreds of products being pulled, with rates rising across the board,” Houghton said.
The data indicates that while first-time buyers face the highest exposure, other buyer segments are also affected by mortgage market conditions. Upsizers showed 87% mortgage dependency, whilst even downsizers, typically with more equity, relied on financing in 40.5% of transactions.
Market outlook
The figures suggest that mortgage market volatility will have the broadest impact on first-time buyers, who have limited alternatives to financing. Existing homeowners with mortgage terms expiring in coming months also face potential rate increases when refinancing.
The current market conditions contrast with earlier forecasts for rate reductions in 2026, creating uncertainty for buyers across all segments, though the impact appears most concentrated among those entering the property market for the first time.
