Well, we hope so. Of course, there is a slight wrinkle in the fact that the first-time buyer threshold for Stamp Duty Land Tax (SDLT) is reducing from £425,000 to £300,000, which will increase the tax burden for first-time buyers from 1 April 2025.
Other than that, there are some positive signs that applying for a first-time buyer mortgage in 2025 might just be getting that little bit easier.
Firstly, as covered in the Financial Reporter, the number of first-time buyers rose by 19% in 2024, accounting for 54% of properties purchased with a mortgage. And that’s on the back of a difficult year, which saw first-time buyer mortgage rates – and UK mortgage rates in general – continually fluctuate.
With mortgage rates seemingly on a downward trajectory following the Bank of England’s (BoE) recent decision to cut the base rate of interest, it suggests that there may be less friction when it comes to getting a first-time buyer mortgage in the UK this year. However, at the time of writing, it has just been announced that inflation has crept up again, so who knows what the BoE will do next.
But there is something else, too.
Government intervention
Not only has the government launched a new – and permanent – Mortgage Guarantee Scheme, which will replace the one due to come to an end this year, but it’s also backed calls from the Financial Conduct Authority to relax the mortgage application criteria for first time buyers.
Whilst no details of the new first time buyer mortgage scheme have been unveiled at this stage, the move is expected to help a generation that has been ‘locked out’ of homeownership.
As a team of Guildford mortgage brokers, we expect this decision to increase first-time buyer confidence in a market that has, for too long, been difficult to access. It’s no surprise, then, that all of our Surrey mortgage advisers back the new plans.
But what can you do in the meantime?
As a first-time buyer mortgage specialist, we have access to the best first-time buyer mortgage deals in the UK. We’re also closely watching and waiting for updates on what the new Mortgage Guarantee Scheme will look like, so regardless of when you contact us, we will always have the latest information on first-time buyer mortgage deals, schemes and legislation.
And even if you’re not quite ready to buy your first property but would like some advice on what you need to get ready before you apply, then get in touch.
For award-winning mortgage advice, contact Complete Mortgages’ team of mortgage advisers in Guildford on 01483 238280 or e-mail info@complete-mortgages.co.uk.
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