First-time buyer assistance increased by 20% in 2024 – Mojo Mortgages

Mojo Mortgages has released its 2024 in Review Report, detailing key trends that affected the UK mortgage market this year, including a 20% increase in first-time buyers seeking assistance.

Over half of these buyers, at 50.8%, were aged between 25 and 34, which is close to the national average age for first-time buyers of 33 years and eight months.

Notably, 5% of first-time buyers were aged between 51 and 64.

The average deposit for first-time buyers decreased by 6.1% to £54,894, while loan amounts rose by 5.8% to £221,309.

At the same time, the average mortgage term increased from 29 years and four months to 29 years and 11 months. 

In remortgaging trends, one in seven (or 14%) of customers remortgaged specifically to fund home improvements.

Almost half at 48% opted for product transfers with their existing lenders, while 52% switched lenders for better rates. 

In terms of mortgage products, 95% of customers chose fixed-rate mortgages, reflecting a strong preference for stability.

Two-thirds of these customers, at 68.8%, chose 2-year fixed-rate mortgages for lower rates and flexibility.

The busiest season for mortgage activity was autumn, accounting for over a third, or 36.4%, of all approved mortgages. 

John Fraser-Tucker, head of mortgages at Mojo Mortgages, said: “What a rollercoaster 2024 has been for the UK mortgage market.

“We saw the first Bank of England base rate drop since March 2020, which initially brought some relief.

“However, many homeowners still faced steep payment increases as pre-Liz Truss fixed-rate deals came to an end.

“Mortgage rates fluctuated throughout the year, with 2-year fixed rates ranging from 4.5% to 5.3%, and 5-year fixed rates between 4.1% and 4.9%.”

Fraser-Tucker added: “Despite these challenges, we’ve seen remarkable resilience from homebuyers.

“The number of first-time buyers we helped increased by 20% this year, with many adapting to affordability issues by opting for longer mortgage terms – now averaging nearly 30 years.

“It’s also fascinating to see 5% of first-time buyers in the 51 to 64 age bracket, proving it’s never too late to get on the property ladder. 

“Looking ahead to early 2025, we’re anticipating a busy period.

He said: “The recent Autumn Budget measures are expected to reduce competition from landlords, potentially opening up more opportunities for first-time buyers.

“Additionally, with Stamp Duty Land Tax (SDLT) rates changing from 1st April, we’re likely to see a surge of activity in the first quarter as people try to complete purchases before any new rules take effect. 

“These trends, combined with the overwhelming 95% preference for fixed-rate mortgages we saw in 2024, indicate that stability and long-term planning remain top priorities for homeowners in these uncertain times.”