First-time buyers accounted for 35% of the total new business mortgage market value in Q1, while home movers represented 34%, and remortgages made up 31%.
Application volumes for February also surged, with 49,982 first-time buyers applying for mortgages, the highest monthly number since March 2022.
“It’s been a positive start to the year across the mortgage market, with the volume of first-time buyer applications ahead of home movers and remortgages, shooting up to numbers not seen in nearly two years,” said Liam O’Hara, head of mortgages at first direct.
“If we cast our mind back to the New Year, we saw most mortgage providers reduce mortgage rates considerably in response to reduced swap rates. The positive impact of this was seen across the market, with first-time buyer mortgage applications flooding in across February.
“The appetite for home ownership remains consistent, with aspiring homeowners acting fast in order to secure competitive rates. This shows the resilience of first-time buyers even in a higher rate environment, and the desire to get on the ladder driving the category to dominate the market when it comes to volume.”