First-Time Buyers Fuel Mortgage Boom
- Sarah Ruivivar
- 4 days ago
- 2 min read
Grab your calculators and your cuppa because we've got some exciting news from the world of mortgages!
Yorkshire Building Society (YBS) has reported a delightful surge in first-time buyer mortgage transactions, with a whopping 18% increase in 2025 compared to the previous year. That's right, folks—390,324 eager new homeowners hopped onto the property ladder, bringing us tantalisingly close to the 2022 peak of 405,250.
So, what's driving this mortgage mania? According to YBS's group economist, Max Shepherd, it's a cocktail of real earnings growth, lower mortgage rates, and regulatory changes that allow lenders to offer more generous loans. It's like a perfect storm, but in a good way!
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However, Max warns us not to rest on our laurels. While the dream of homeownership is becoming more attainable, challenges like saving for deposits and passing affordability checks are still hurdles for many. We can't let the gap widen between those who have a home and those who don't.
But wait, there's more! The overall number of house purchases completed with mortgages is expected to rise by 16% to 717,588 in 2025, thanks largely to our enthusiastic first-time buyers, who make up a solid 54% of the total.
And here's a cheeky tip from YBS: If you've got a hefty sum lounging in your current account, earning a paltry 1% interest or less, it's time to shake things up! Over 12 million accounts are missing out on better interest earnings. So, let's put that money to work!
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Access from your preferred podcast provider by clicking here
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