First-time buyer numbers rebound in 2025, says UK Finance
Around 354,000 first-time buyer mortgages were completed in 2025, up around 15% on 2024, as rates fell and the post-Stamp Duty rush boosted Q1.
By Money Guide editorial team
Published:
Annual figures from UK Finance show first-time buyer mortgage completions rebounded in 2025, with around 354,000 loans advanced — up roughly 15% on 2024. The increase was concentrated in the first quarter, ahead of the April Stamp Duty changes, but activity remained reasonably strong for the rest of the year.
The average first-time buyer deposit fell slightly to around £52,000 (24% of purchase price), reflecting the increased availability of higher LTV deals. The cheapest 95% LTV mortgage rates ended the year just above 5%.
Average first-time buyer age remained at 33 nationally and 35 in London. Around two-thirds of first-time buyers used a Lifetime ISA, Help to Buy ISA savings (still permitted to be paid into until November 2029 for existing accounts) or family support to assemble their deposit.
Mortgage repayment terms continue to lengthen, with terms of 35 years or longer now common for first-time buyers. The trade-off is lower monthly payments but a markedly higher total interest cost over the life of the loan.