Spike in demand linked to sub-4% rates and Stamp Duty rush
A notable increase in mortgage searches by first-time buyers was recorded in the first quarter of 2025, new data from Legal & General’s Ignite platform has revealed.
The platform reported a 45% rise in searches from first-time buyers compared to the final quarter of 2024. The most significant growth was among buyers aged 56 to 65, whose searches jumped by 80%. Those aged 18 to 30 saw a 53% increase, while other age groups also recorded sizeable gains — 44% for the 51 to 55 bracket and 37% among 31 to 40-year-olds.
The growth was seen across all age categories and may have been driven by the deadline for Stamp Duty Land Tax relief. Greater access to mortgage deals below 4% may also have encouraged more would-be homeowners to enter the market.
In Q1 2025, the most searched-for property price band was £150,000 to £250,000, accounting for 39% of all searches — up from 36% the previous quarter.
Searches for mortgages with loan-to-value ratios between 91% and 95% dominated the first-time buyer segment, representing 34% of enquiries. However, there was also a sharp 43% rise in searches for mortgages with LTV ratios between 51% and 55%. This shift could suggest stronger buyer affordability, with borrowers less reliant on high-LTV loans than in the previous quarter.
Kevin Roberts (pictured), managing director of Mortgage Services at Legal & General, said the numbers point to a promising start to the year.
“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,” he pointed out. “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.”
Roberts added that while many buyers rely on family support, not everyone has that option, reinforcing the importance of expert advice.
“If you’re starting your property search, seeking advice from a professional mortgage adviser is a must,” he said. “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.”
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