L&G says there has been a ‘significant increase’ in first-time buyer searches for mortgages, including a sharp rise in older buyers who want to get on the property ladder.
Quarter one data from L&G’s Ignite mortgage platform showed an increase of 45% for first-time buyers compared to figures from Q4 of 2024, with searches by potential buyers in the 56-65 age group surging by 80%.
Interest from the 18-30 age category grew by 53% over the same period, with a 44% increase in queries from those aged 51-55, and the 31-40 age group up 37%.
L&G attributes much of the uptick to the SDLT deadline, but suggests the increased availability of sub-4% products could also have contributed.
Kevin Roberts, managing director of Mortgage Services at L&G, said:
“A strong start to the year for first-time buyers is more than encouraging – it’s a positive sign of the market’s health as we head into spring, a traditionally busy period for property sales and new listings. Lower mortgage rates have been a feature of the first quarter of the year, with several major lenders now offering products at rates below 4%. Although the artificial stimulus of the lower stamp duty threshold is now over, the outlook is positive It’s great to see first-time buyers in a position where they can really engage with the market.”
With L&G’s Mortgage Services business involved in around a quarter of all mortgages in the UK, data from its Ignite platform offers a reliable overview of the market and trends amongst UK borrowers.
The most searched property value range in Q1 was £150k to £250k, which accounted for 39% of all searches – up from 36% in Q4 2024. The most searched Loan-to-Value (LTV) category for first-time buyers was the 91-95% range, which made up 34% of total searches. Over the same period, L&G recorded a 43% increase in the number of first-time buyers searching for 51-55% LTV mortgages.
This may reflect an improvement in overall affordability, meaning the average borrower will be less overleveraged in Q1 2025 than the average borrower in Q4 2024, says L&G.
Roberts added:
“There are plenty of options out there for first-time buyers, with some major lenders cutting rates exclusively for this group. We know that many buyers use financial gifts from loved ones, to secure their first home, but not everyone can rely on this support. If you’re starting your property search, seeking advice from a professional mortgage adviser is a must. Their expertise can lead you to the right mortgage product, which is a huge advantage when making what is likely to be the single biggest purchase of your lifetime.”
