Mortgage in principle (MIP) applications surged in December, with an 82% increase compared to the previous year, data from Moneybox has found.
Christmas Day saw a 70% rise in MIPs, while Boxing Day had a 55% increase, and New Year’s Day experienced a 76% boost.
The overall increase for Q4 of 2024 was 92%.
This rush was sparked by the Government’s announcement to reduce the Stamp Duty nil-rate threshold, reverting back to £125,000, and £300,000 for first-time buyers from 1st April.
Felicity Holloway, head of mortgages at Moneybox, said: “The upcoming stamp duty threshold change is clearly driving urgency among first-time buyers, but when buying a home, it’s vital to balance speed with thoroughness.
“We know that many aspiring homeowners have been saving their deposit for many years, so it’s no surprise that some have re-assessed their homebuying timeline and hope to expedite the process.
Holloway added: “Completing a Mortgage in Principle (MIP) as early as possible is important as it positions you as a serious buyer, which can be advantageous in competitive situations.
“A Stamp Duty Calculator will also help you estimate the cost difference and assess whether proceeding now aligns with your financial readiness.
“While avoiding higher stamp duty is appealing, It’s important to plan for the long term to ensure the property aligns with your long-term needs and goals.“
Brian Byrnes, head of personal finance at Moneybox, said: “For decades, homeownership has been seen as a cornerstone of financial stability and one of the most effective ways to build wealth, thanks to the potential for equity growth over time.
“With changes to Stamp Duty fast approaching, it’s never been more important to ensure there are robust mechanisms in place to support the next generation of first-time buyers in achieving their homeownership dreams and securing their financial future.
Byrnes added: “The Lifetime ISA (LISA) is one such product that has already made a significant impact, helping hundreds of thousands get onto the property ladder far sooner than they otherwise could.
“Today, more than 1.5 million young people across the UK are saving with a LISA, benefiting from the 25% government bonus on their contributions.
“This vital support has allowed them to continue progressing toward homeownership despite persistent economic challenges and the rising cost of living.
He said: “The LISA not only helps young people save for their first home but also fosters positive savings habits early in life—laying the foundation for long-term wealth building.
“To ensure its continued success, we believe future-proofing the LISA is essential.
“Index-linking the property price cap and introducing an emergency cash withdrawal allowance would give the next generation of first-time buyers the confidence and flexibility they need to save for their first home and beyond.”*
