FTBs playing ‘increasingly central role’ in driving mortgages sales – ONS
First-time buyers accounted for more than half – 52.8% – of all mortgage sales in 2025, showed data from the Office for National Statistics (ONS).
Mortgage sales to first-time buyers increased from 326,474 in 2024 to 379,207 in 2025.
First-time buyers accounted for more than half of mortgage sales last year, compared with 33.8% in 2006.
Mortgage sales recover since 2021
There were 717,519 mortgage sales across the UK in 2025, up from 617,295 in 2024; this was the highest annual total since 2021.
Mortgage sales rose across every UK region in 2025, with the East Midlands leading the recovery as activity jumped 21.3% year-on-year.
Giving brokers the winning edge
Sponsored by Rely
The East of England recorded the second-strongest rise, with mortgage sales climbing 19.7% to 75,376, closely followed by the North West, where activity increased 19.1% to 79,775.
The West Midlands and North East also outperformed the national average, posting increases of 18% and 17.7% respectively. Meanwhile, the South East – the UK’s largest regional mortgage market – saw sales rise 17.2% to 107,272.
Growth was more muted in London, where mortgage sales increased 11.8% to 73,308, while Northern Ireland recorded a rise of 11.5% to 16,634.
LTI and LTV ratios rise
Borrowers took on larger mortgages relative to both their incomes and property values in 2025, as loan-to-income (LTI) and loan-to-value (LTV) ratios rose across much of the UK.
The average UK LTI ratio increased from 3.3 in 2024 to 3.5 in 2025 for all buyers and from 3.5 to 3.6 for first-time buyers.
First-time buyer LTV ratios also climbed, rising from 85% to 85.6%, the highest level since before the financial crisis. This suggests buyers are increasingly relying on mortgage borrowing and contributing smaller deposits.
Regional differences were stark. The North East recorded the highest first-time buyer LTV ratio at 89.8%, followed by Scotland at 89.7% and Wales at 88.9%. London was the lowest at 80.2%, reflecting the larger deposits typically required in the capital.
London continued to have the highest LTI ratio, at 3.9 for all buyers and 4.0 for first-time buyers, compared with 2.9 and 3.0 respectively in the North East.
Richard Pinch, senior director at Broadstone, commented: “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 homeownership, as new buyers remain a key source of demand despite the affordability challenges of recent years.”
