Mojo Mortgages has published an overview of the key trends and insights that shaped the UK mortgage market this year, as well as key insights from its own 2024 data.

The broker witnessed a 20% increase in first-time buyers seeking help this year. 50.8% of these buyers were aged between 25 and 34, which aligns with the national average first-time buyer age of 33 years and 8 months.

Meanwhile, 5% of first-time buyers were aged between 51 and 64.

The average deposit for first-time buyers decreased by 6.1% to £54,894, while loan amounts rose by 5.8% to £221,309. However, the average mortgage term increased from 29 years and 4 months to 29 years and 11 months.

REMORTGAGING

In 2024, 14% of Mojo Mortgages’ customers remortgaged specifically to fund home improvements.

In addition, 48% opted for product transfers with their existing lenders, while 52% chose to switch lenders for potentially better rates.

PRODUCT TRENDS

95% of Mojo Mortgages’ customers opted for fixed-rate mortgages this year. Among these, 68.8% chose two-year fixed-rate mortgages due to their lower rates and flexibility.

Autumn was the busiest season for mortgage activity, accounting for over a third (36.4%) of all approved mortgages.

John Fraser-Tucker, head of mortgages at Mojo Mortgages, said: “What a rollercoaster 2024 has been for the UK mortgage market.

“Looking ahead to early 2025, we’re anticipating a busy period”

“We saw the first Bank of England base rate drop since March 2020, which initially brought some relief. However, many homeowners still faced steep payment increases as pre-Liz Truss fixed-rate deals came to an end. Mortgage rates fluctuated throughout the year, with 2-year fixed rates ranging from 4.5% to 5.3%, and 5-year fixed rates between 4.1% and 4.9%.

“Despite these challenges, we’ve seen remarkable resilience from homebuyers. The number of first-time buyers we helped increased by 20% this year, with many adapting to affordability issues by opting for longer mortgage terms – now averaging nearly 30 years. It’s also fascinating to see 5% of first-time buyers in the 51-64 age bracket, proving it’s never too late to get on the property ladder.

“Looking ahead to early 2025, we’re anticipating a busy period. The recent autumn budget measures are expected to reduce competition from landlords, potentially opening up more opportunities for first-time buyers. Additionally, with Stamp Duty Land Tax (SDLT) rates changing from 1st April, we’re likely to see a surge of activity in the first quarter as people try to complete purchases before any new rules take effect.

“These trends, combined with the overwhelming 95% preference for fixed-rate mortgages we saw in 2024, indicate that stability and long-term planning remain top priorities for homeowners in these uncertain times. At Mojo, we’re geared up to help our customers navigate these changes and find the best mortgage solutions for their needs in the coming year.”