Mortgage sales hit highest level since 2021 as FTBs return to market – ONS
There were 717,519 mortgage sales across the UK in 2025, up from 617,295 in 2024.
There were 717,519 mortgage sales across the UK in 2025, up from 617,295 in 2024, according to the latest data from the Office for National Statistics (ONS).
This was the highest annual total since 2021, but activity remained about 34.5% below 2006 levels.
First-time buyers (FTBs) accounted for 52.8% of mortgage sales, compared with 33.8% in 2006.
The median loan-to-value (LTV) ratio for FTBs rose to 85.6%, its highest level since before the 2008 financial crisis.
London recorded the lowest FTB LTV ratio at 80.2%.
Scotland, Wales and the North East recorded some of the highest ratios.
The average UK loan-to-income ratio rose to 3.5 across all mortgage sales and 3.6 for FTBs.
Richard Pinch, senior director at Broadstone, said: “Mortgage activity showed clear signs of recovery in 2025, with sales reaching their highest annual level since 2021 as buyers returned to the market following a period of higher interest rates and affordability pressures.
“The mortgage market has undergone a significant structural shift, with first-time buyers playing an increasingly central role in driving activity.
“This reflects the changing dynamics of home ownership, as new buyers remain a key source of demand despite the affordability challenges of recent years.”
Pinch added: “At the same time, the route onto the property ladder is evolving, with buyers increasingly relying on higher levels of borrowing relative to property values following a period of sustained house value increases relative to pay.
“This highlights the ongoing challenge of balancing access to home ownership with ensuring households remain financially resilient over the longer term.
“With affordability remaining a key challenge, lenders will need to continue balancing support for borrowers with robust assessments of affordability, particularly as households navigate higher costs and changing economic conditions.”
Related
Impaired credit mortgage sales reach highest level since 2008 – Broadstone
Market Harborough Building Society launches Rent to Own initiative
Seven in 10 FTBs frustrated by home buying process – Skipton BS
64% of FTBs rely on side hustles to save for home deposits – Mojo Mortgages
Ecology Building Society launches mortgage for Scottish FTBs
56% of prospective FTBs believe it is difficult to get a mortgage, YBS finds
Your First Home scheme could leave FTBs unable to sell, property expert warns
54% of parents return rent to help children save for deposit – Nationwide
More than a third of FTBs do not recall receiving protection advice, data finds
High LTI loans to FTBs up 66% in 2025, analysis finds
More than one in four FTBs hide spending habits – Mojo Mortgages
