Mortgage Boost Opens Doors for Homemovers

Strong Growth in Mortgage Lending

The UK mortgage market has seen a significant uplift. In Q1 2025, gross advances reached £77.6bn—a 50% increase year-on-year and the highest level in nearly two years. Home movers accounted for 34.9% of this lending and first-time buyers for 31.4%, both marking the highest proportions since records began.

As base rate reductions since August 2024 have gradually fed into the market, lenders have responded with softened criteria. This has led to an increase in borrowing potential for many buyers. On average, first-time buyers are now purchasing homes priced 7% higher than a year ago, and existing homeowners are seeing an average 0.8% increase in their purchasing power.

First-Time Buyers Reaching New Heights

First-time buyers now make up roughly 31% of all new mortgages, according to the Bank of England—a record share. The number of first-time buyers entering the market also rose by 19% in 2024 compared to 2023.

According to property portal Zoopla, nearly half (47%) of first-time buyers are purchasing as individuals, and around 31% have children— with a strengthening demand for family homes. Many other buyers are also seeking to upsize, contributing to greater competition in this space.

Demand for Larger Homes
In particular, there is a growing demand for detached homes while Zoopla indicates that since April 2024, interest in terraced houses has also surpassed that for apartments, showing the shift in buyer priorities.

Property Prices and Market Activity

Mortgage rate stability has supported increased homemover activity over the past 12–18 months. According to Zoopla, this has led to a 13% rise in available properties, and while values remain steady, a slight cool in price growth has had a positive impact on home movers.

Key trends:
• First-time buyers are finding it easier to step onto the ladder, with a wider choice of affordable properties.
• Those looking to upsize are seeing smaller price jumps, improving their options and flexibility.

At Mackenzie Smith, we’re seeing plenty of momentum in the market, with homes often attracting multiple buyers and second or third viewings becoming more common as prospective buyers make their final decision.

Current Mortgage Rates

• Average 2-year fixed rates are currently around 4-5%, with 5-year fixes at a similar level.
• Some lenders are offering deals below 4%, often with a stricter criteria.
• Halifax Building Society expects fixed mortgage rates to remain between 4–5% this year.

What’s Your Next Step?

If you’re considering moving home or making a first-time purchase, financial preparation is key to making a compelling offer and securing the right home. A Mortgage Advisor can help you make the right move at the right time, securing a mortgage offer in advance.

“Whether you’re a first-time buyer or a homemover, it can be daunting to know what steps to take. If you’re only focusing on mortgage rates, you might be missing the full potential of your budget and deposit.

The answer is simple—speak to a Mortgage Advisor. We can help guide you through the process and lender criteria, improving your chances of securing a competitive rate and affording a more desirable property.”

Andrew Fagg, Mortgage Advisor, Thameside Associates

If you’d like to speak with an advisor, Andy Fagg is available at our Farnborough Office, and covers the areas of Hook and Farnborough. You can reach him on 07720 353866 or by email here.

For mortgage advice in our local and surrounding areas, we recommend contacting Mortgage & Protection Advisor Nick Harrison at Penny Matters on: 01344 577886 / 07481 811577, or by email, here.

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Mortgage Lenders and Administrators Statistics – 2025 Q1 | Bank of England

theguardian.com.

Lower stress rates and cheaper mortgages fuel first time buyer boom – Introducer Today