Almost half of first time buyers end up paying rent and mortgage at the same time

According to Aldermore’s latest First Time Buyer Index¹, nearly half (45%) of first time buyers had to pay both rent and mortgage payments at the same time because they couldn’t align the end of their rental contract with the purchase of their new home.
On average affected FTBs double up on these costs for 2.4 months.
Based on data of average rent and mortgage payments, this means buyers are spending approximately £5,050².

Jon Cooper, director of mortgages at Aldermore, comments: “First time buyers may want to have a slight overlap with their rental contract and newly purchased home, to remove some of the stress moving can bring. However, this comes at a cost during an already expensive time.

“Keeping your landlord in the loop on your homebuying journey is a smart way to see if you can get timings to align. If you’re planning to buy in the next year, you might want to consider approaching your landlord to see if they would be open to a rolling monthly contract or a more flexible break clause.”

**Ends**

Notes to editors

¹Research conducted, on behalf of Aldermore bank, by Opinium between 17^th – 28^th June 2024, among 2,000 Prospective First Time Buyers and 500 Actual First Time Buyers.

²https://www.rightmove.co.uk/news/rental-price-tracker – based on Rightmove’s national average asking rent of £1,314 (£1,314x2.4=£3,154) and average monthly mortgage payment as calculated by Opinium for Aldermore of £790 (£790x2.5=1,896)

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